Introduction
Humana Inc. Company is a marketing company for healthcare services that was founded in 1961. Currently, the company has a more than 11.5 million customer base in America, and it is considered to be the biggest company with revenue of over $21.4 billion. The company operates in all 50 states in America. The company has been able to achieve this magnificent growth company strategy that has ensured that it take the lead in health care services. Well-defined company strategies also ensure that a company achieves or even surpasses its objects and targets (Humana, 2007).
The Company Vision
Throughout the company, the company strives to deliver value to its customers, its members, and its shareholders (Humana, 2007).
The company Mission
The company is committed to helping employers to handle their healthcare expenditures, guide consumers in making informed healthcare and benefits choices, and supporting the communities that the company serves (Humana, 2007).
Humana company strategy
A strategy is a pattern of activities that seek to achieve the objective of an organization and adopt its scope, resources, and operations to environmental changes, it is normally a long-term plan of action designed to achieve a particular goal. A strategy distinguishes a course of action by its hypothesis that a certain future position offers an advantage of acquiring again. The company has undertaken a marketing strategy (Grant, 2005).
Marketing Strategy-this is a planning process that can allow an organization to concentrate its resources on the greatest opportunities to increase sales and achieve sustainable competitive advantage. It serves as the fundamental underpinning of marketing plans designed to reach organizations marketing goals, policies, and action tactics into a cohesive whole. Under the marketing strategy, the company has put in place several strategies, which include Growth strategies and porter’s strategy that has ensured high growth and success of the company in its business (Hunger & Wheelen, 2003).
Porter generic strategies this is a strategy on the dimensions of the strategic scope meaning the market penetration and strategic strength referring to the company (Porter, 1985)
The degree of rivalry among established companies within an industry
The healthcare services industry has grown and become very competitive; however, the company has managed to maintain its market share by improving its products through new innovative services. The company also has very competitive pricing of its products and services that has ensured that it is continuous to be more attractive for many clients (Porter, 1985).
The threat of substitute products
The industry is faced with threats from various companies that are trying to offer a substitute for the healthcare plan. However, health is a very important issue, and many people will prefer getting the best; this can only come from well-established companies like Humana. To this end, the company has no major threat as its services are vital and basic.
The bargaining power of buyers
This is the impact that the customers have on an industry. Though the buyer power is weak in the industry, the company enjoys a high rate of sales because of the superior services and products that they have developed (Porter, 1985).
The bargaining power of suppliers
The industry is enjoying high supplier power. The company is among the biggest players in the industry, has continued to enjoy supplier power, and has undertaken to produce better products and services to maintain its place (Porter, 1985).
The risk of new entry by potential competitors
New companies enter into the industry as health care provides since the industry is liberal. However, Humana company customer base continues to grow because of its strategies in handling new entries. The company has enough assets and resources that it utilizes in expanding its services and has various patents that ensure it continues to provide unique products and services (Porter, 1985).
General Environment
The general business environment in the industry is conducive, the American economy is stable and growing, the demographics figure are high, ensuring the company services and products continue to be sought. The current social factors, include lifestyle, highly place healthcare as a priority in society. The availability of modern technology, globalization, and a stable political system are among some factors that remain positive in the industry, ensuring that the industry continues to grow. Also, competitive environment (McGahan, 2004).
Market Today
The healthcare industry continues to be a very dynamic industry; it is predicted that the industry will continue growing as more people continue to seek better healthcare planes and services. The Humana Company has also forecasted this, and it continues to build more facilities and acquire other subsidiaries to cope up with the rising growth and demand. In reviewing the SWOT analysis: which are strengths, weaknesses, opportunities, and threats, the Humana Company has an advantage (Grant, 2005).
Strength; immerse capital in terms of human and financial; also have a well-developed network and high technological abilities.
Weakness; current weakness may be the inability to adhere to ethical standards in the industry, which has lead to lawsuits.
Opportunities; there are new opportunities in other country and the company can exploit those markets. Also, the company can create new products and services for the industry as there is still a need for more healthcare products.
Threats; Humana Company is facing threats from new entries in the industry that are creating tough competition in the industry. At the same time, the government policies about healthcare services keep on changing, and they may negatively impact the company (Grant, 2005).
Recommendations
Humana Company has grown faster than many companies grow; this is can, of course, be attributed to its marketing strategy that emphasized growth. Currently, the company needs to develop a sustainable competitive advantage strategy that will ensure that the company sustains its large customer base, which is estimated to be more than 11.5 million. This can be done through such as cost leadership, product differentiation, and market segmentation. At the same time, the company can also enhance or introduce Innovation strategies that will deal with the company’s rate of new product development and business model innovation to ensure that more innovative products and services are innovated to offer the customers superior products and services. This will ensure that Humana Company maintains and even increases its market segment.
References
Grant, R.M. (2005): Contemporary Strategy Analysis; Blackwell Publishing Ltd., Oxford (U.K.)
Humana (2007): About Humana company.
Hunger, J. D & Wheelen, T, L. (2003): Essentials of Strategic Management. New Jersey: Pearson Education Inc.
McGahan, A. (2004): How Industries Evolve – Principles for Achieving and Sustaining Superior Performance”. Harvard Business School Press, Boston,
Porter, M.E. (1985): Competitive Advantage: The Free Press, New York, 1985.