INTEGRATION PRACTICE OF CARDINAL HEALTH
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- Evaluating the threat and opportunities of Cardinal Health’s international activities.
Product development has been deemed the most favorable strategy among the four suggested by the strategic management tools. This is given a rating of 4 relative to the popularity of e-commerce and e-based technology in the health care industry along with increase in the usage of certain technologies because it warrants the openness of the market to the development of innovative ways under the said condition. In addition, the strengthening of the foreign exchange rate would allow for sufficient resources to be utilized in this proposal to develop new products that could be introduced in the market.
On Threats
Market penetration is the best strategy to address the threats identified in the health care industry. It is given the rating of 4 considering that 85% of the population is already covered in terms of medical insurance and health care services. Hence, Cardinal Health can capitalize on penetrating other services offered in the industry which is slowly gaining momentum. Cardinal Health can also capitalize on the growing market in the international arena for health care product and services that it already have and create innovations in this service that users would find useful and indispensable. Cardinal Health can also start aggressive marketing in the BPO industry to penetrate this industry and get a new market to address the expansion and horizontal integration to address the global demand.
- Need to adjust the organizational structure of Cardinal Health
Personally, there is no need for adjusting the organizational structure of Cardinal Health as far as their plan to pursue international activities. AT present, Cardinal should penetrate the international market through horizontal integration. This process could the organization to have existing market to deliver the products and services they have. This will ensure a continuous flow in business operations as there is no need to search for market because the company that they have acquired through the integration already has existing clients that Cardinal Health could cater.
