Aetna is a medical and healthcare service-providing American company. Eliphalet Adams Bulkeley founded the healthcare company in 1853. Today, we’ll discuss the SWOT analysis of Aetna; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Aetna
- Healthcare insurance
- Medicare
- Disability benefits
- Long-term health
- Behavioral care
- Dental
- Pharmaceutical
- Medical
Subsidiaries of Aetna
- First Health PPO Network
- Aetna International
- Active Health Management
- Healthagen
- Coventry Health Care
Parent Company of Aetna
- CVS Health
Competitors of Aetna
- Centene
- Kewaunee Corporation
- Molina Healthcare
- WellCare Health Plans
- Express Scripts
- Cigna
- Humana
- Elevance Health
- Aflac
- Anthem
The SWOT analysis of Aetna would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Aetna SWOT analysis as a business strategy analysis example company as follows;
Strengths of Aetna
Some of the main internal strengths in the Aetna SWOT analysis example company as business strategy analysis are as follows;
Large Network
- Medical members – 22.1 million
- Dental members – 12.7 million
- Pharmacy benefits services member – 13.1 million
- Healthcare professionals – 1.2 million
- Doctors – 690,000
- Hospitals – 5700
These statistical figures show that the healthcare brand has established a very large network of hospitals and pharmacies. The large network helps the company to target various segments of the customer market and serve with variety of medical and pharmaceutical services.
Global Insurance
Aetna offers a universal healthcare insurance plan and it is applicable and covers insurance costs in more than 200 countries across the world. The insurance plan covers a wide range of medical issues and diseases relevant to pharmacy, vision, dental, medical, and others.
Economies of Scale
Aetna is conducting its operations and offering services at a massive level in terms of a large network of pharmacies, hospitals, and other healthcare services. The economies of scale operations help the company to decrease the per-unit operational cost.
Satisfied Customers
Aetna has been operating its business in the healthcare industry for the past more than 170 years. The company has served millions of customers and patients with multiple types of healthcare issues and diseases. The long and strong legacy helps the company to earn the trust and confidence of customers.
Professional Expertise
Aetna has a professional expert team comprising, doctors, surgeons, dentists, and highly qualified specialists. They have the license and professional expertise to diagnose and resolve various types of healthcare issues.
Weaknesses of Aetna
Some of the main internal weaknesses in the Aetna SWOT analysis example company as business strategy analysis are as follows;
Limited Online Presence
Aetna has a limited online presence in terms of online healthcare services, online booking, and other digital services. Since the online and digital service usage trends are increasing, the limited online presence is limiting the company’s growth, revenue, and sales.
High Price Costs
The cost of Aetna’s medical services is a bit higher than other medical service-providing companies. It is not good for the company’s financial health, because many economic class and price-conscious customers won’t buy its service plans.
Legal Controversies
Aetna had a long history of lawsuits and paying legal penalties, punitive charges, and settlement costs in millions of dollars. It is not only jeopardizing the company’s reputation, but it also costs the company a lot of capital resources.
Opportunities for Aetna
Some of the main available opportunities in the Aetna SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Aetna should consider expanding its business in other countries and underserved states of the US. It would help the company to increase its customer portfolio; enter new regions, and serve new markets worldwide.
Portfolio Diversification
Along with market expansion, Aetna should expand its medical service portfolio add more services, and cover diseases in its insurance plans. It would help the medical company to attract the attention of a diverse range of customers and patients.
Acquisition
Acquisition and merger is the best market expansion strategic approach. Aetna should acquire other small medical and healthcare service-providing companies. It benefits the company in two ways; first removing the competition from the market; second, it targets more customers with new services.
Threats to Aetna
Some of the main potential threats in the Aetna SWOT analysis example company as business strategy analysis are as follows;
Regulatory Compliance
The legal penalty for medical punitive charges is very high. It has caused significant capital loss to the company. Aetna should comply with the legalities and medical and healthcare regulations; it would help the company reduce legal and regulatory expenses and losses.
Competition
The medical and healthcare service-providing market has become highly competitive in recent years. There are multiple healthcare service providers offering similar services; their market presence is negatively impacting the company’s growth and performance.
Conclusion: Aetna SWOT Analysis Example Company |SWOT Analysis of Aetna |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Aetna; we have realized that Aetna is the world’s leading medical healthcare service-providing firm. If you are learning about Aetna SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
