Introduction
An organization’s business strategy and its relationship with its internal and external environments play a major role in its success by guiding policy development and decision-making toward achieving goals. Thus, a business analysis assesses an institution’s corporate strategies to identify the need for change and design solutions that maximize the value of services provided by the organization. The UnitedHealth Group is a medical organization dedicated to advancing health equity, improving patient experiences in medical institutions, and enhancing healthcare accessibility across populations. Thus, its business model is focused on designing effective governance through independence and board diversity. However, the organization has several other attributes that enable it to achieve high success levels. The following paragraphs analyze the organization’s corporate model, business strategies, business structures, management systems, and strategic fit. The organization’s commitment to ethics, integrity, supply chain management and data security has enabled it to gain consumer trust and grow toward sustaining a high-quality health service system.
UnitedHealth Group’s Generic Business Strategies
The UnitedHealth Group is currently one of the most successful healthcare service providers worldwide. The organization serves more than 34 million individuals and thousands of medical institutions worldwide due to its emphasis on value-based healthcare services and expanding access to care (Buchwald, 2022). UnitedHealth Group’s generic business strategy is focused on differentiation to achieve sustainability and ensure continuous growth. Apart from providing insurance coverage, the organization has online platforms that it uses to offer mental health management programs, a pharmacy distribution chain, and advanced technological systems for medical institutions (Lensing et al., 2019). Nevertheless, the organization also takes advantage of cost leadership strategies and high-quality service delivery to achieve its development goals.
The UnitedHealth Group is also devoted to improving healthcare affordability and advancing health equity for all individuals regardless of their financial status, social standing, abilities, and background, thus advancing its cost leadership strategies. The organization has streamlined its financial systems and adopted price transparency tools for pricing and drug prescriptions. According to Kim (2021), its members save close to $225 on every transcription due to the tool’s effectiveness. Similarly, the UnitedHealth Group works towards facilitating health equity by engaging with underserved communities and providing support. For example, the organization occasionally invests in scholarships for Black-American students and assists individuals from marginalized communities to secure job opportunities (UnitedHealth Group, 2022). Additionally, it oversees infrastructural advancements and staffing of medical institutions in marginalized regions. Moreover, it donated to community organizations that advocate for reduced disparities. Its community approaches have enabled it to become a global leader in health service provision and medical advancements.
UnitedHealth Group’s Marketing Business Strategy
Marketing is a critical aspect of business organizations seeking to diversify their consumer base and maximize revenue. The UnitedHealth Groups’ marketing process comprises a series of steps that identify consumer issues and maximize on gaps in the healthcare industry (Jahn & Bohnet-Joschko, 2022). Generally, the organization provides healthcare services to individuals and their families with a focus on high-quality care and value-based services. Its price transparency, integrity, and accountability have enabled it to gain consumer trust and recommendations as a reliable health service provider (Buchwald, 2022). The UnitedHealth Group offers its members health coverage and plans tailored to their needs. Although their pricing strategy is differentiated, they take advantage of government programs to reduce costs. Therefore, they can effectively serve customers without restrictions due to financial difficulties.
The UnitedHealth Group applies a marketing distribution strategy that targets specific market segments and geographical locations to provide services tailored to their needs. This approach enables the organization to address a range of needs and demands using limited resources. In addition, their advanced digital presence allows them to reach individuals globally and deliver medical services using telemedicine technologies (Crow, 2020). The company is active on social media and uses several platforms to create awareness about its services. Moreover, their presence on Facebook, Instagram, and Twitter allows them to reach millions of people and deliver their message to a broad consumer base. These marketing solutions are cost-effective because they involve negligible investment.
UnitedHealth Group’s Business Model
The UnitedHealth Group is an internationally established organization that works with several other companies in the healthcare industry to oversee its initiatives and achieve sustainable development. The UnitedHealth group is an organization that offers a variety of health benefits to enable more affordable health coverage. In addition, it provides its partners with consultation services, medical technology, and management systems to support a unique healthcare experience and access to optimum quality medical services (Buchwald, 2022). The organization specializes in delivering care driven by data and technology, and scientific innovations. As a result, it empowers individuals and provides its partners with the facilities and technological tools required to achieve better public health outcomes.
The UnitedHealth Group generates a considerable portion of its revenue from selling insurance premiums. However, it also offers coverage for risk-based medical products, collects fees for health services, and sells medical products (Crow, 2020). The organization is also known to purchase competing health service providers, enabling it to gain ground in the industry. Recently in 2019, it purchased PatientsLikeMe, an online health service provider with a patient platform (Jahn & Bohnet-Joschko, 2022). As a result, its strategy allows it to expand and advance its earning potential. Currently, the organization serves more than 74 million individuals and thousands of organizations worldwide that facilitate its continuous revenue flow. Nevertheless, the organization is forecasted to increase its revenue due to its ambitions to diversify its consumer segments.
The UnitedHealth Group’s value proposition is facilitating the provision of accessible and high-quality healthcare services using cutting-edge methods and technology-driven medical solutions. The organization ensures value for its customers by championing affordable healthcare, equipping health service providers and the medical task force, strengthening patient-physician relationships, and building healthier communities (Lensing et al., 2019). Its product diversification is one of the main components that ensure it covers the most critical medical field and engages in clinical research. In addition, their high levels of integrity and transparency have enabled them to build strong consumer relationships and advance to other fields. Thus, its value proposition reflects its vision and mission of delivering sustainable health services on a global scale.
The UnitedHealth Group is a leading organization in the US and the rest of the world in terms of revenue streams, which play a major role in driving up its profits. In 2021, the organization made more than $17.3 billion in profits, according to its earnings report (Kim, 2021). However, in 2022, the organization forecasts making $21.40 to $21.90 per share in profits. Every year, the organization’s revenue grows by 11.8%, summing up to about $30 million (Crow, 2020). During the Covid 19 period, the organization experienced a sharp increase in its profits as more people deferred most medical procedures thus diminishing medical costs. However, Optum Health, a subsidiary of the organization, contributes more than half of its revenue (Buchwald, 2022). Nevertheless, the organization intends to increase its profits in the future due to its expansion initiatives.
UnitedHealth Group’s Corporate Strategy
The UnitedHealth group is an organization that serves shareholders in the healthcare industry by offering a range of products and services. As a result, its corporate strategy is geared toward using its competencies in clinical excellence to improve health care experiences for individuals worldwide (UnitedHealth Group, 2022). Over the years, the organization has engaged in research to improve health outcomes using technological applications and evidence-based solutions. Similarly, the company has invested in additional supply chains that develop medical technologies for multinational healthcare employers, national governments, and individuals worldwide (Jahn & Bohnet-Joschko, 2022). Most recently, the organization decided to integrate its healthcare and pharmacy services to form Optum, one of its most successful ventures (Kim, 2021). Nevertheless, the organization has acquired several other institutions to increase its supply chain efficiencies and keep up with core industry trends such as data analytics, consumerism, and value-based healthcare.
UnitedHealth Group is an organization that is committed to surpassing industry standards. As a result, it bases its corporate strategies on appropriate business behaviors, ethical conduct, and service diversification. Apart from offering insurance and technological solutions, the organization is leading innovation toward gamification as a tool to enhance teamwork and improve the status of employees in medical organizations (Lensing et al., 2019). Moreover, the organization implements a vertical integration strategy that involves market expansion by increasing the quality of its services and improving beyond its rivals. As a result, the organization has sustained continuous development over several years of service by continuously focusing on diversity and advancement.
The organization’s top leadership is its Board of Governors, whose members serve on various committees within the organization, including the compensation and human resources committee, audit, and finance committee, nomination advisory committee, and the code of conduct committees (UnitedHealth Group, 2022). The organization has bases in several other states around the US and major cities across the world. Although the Board of Governors is responsible for overseeing major decision-making initiatives, the organization has officials in its subsidiaries responsible for their operation and appropriate functioning.
Since its inception, the UnitedHealth Group has adopted several business strategies that have enabled it to diversify its products. Although the UnitedHealth Group was incorporated as an insurance company, it ventures in several other fields in medical service provision, including population health management and pharmacy services (Jahn & Bohnet-Joschko, 2022). Most recently, the organization advanced its clinical research resources, allowing it to provide its shareholders with critical and reliable information regarding problematic health issues such as oncology and other chronic illnesses (Lensing et al., 2019). In addition, it liaises with players in the healthcare industry including government entities, non-governmental organizations, investors, start-ups, medical communities, and big-pharmaceutical companies worldwide to design reliable health financing solutions and payment systems. Thus, the organization has a unique vertical integration strategy and a corporate structure that allows it to thrive worldwide.
The UnitedHealth Group owes most of its success to its global alliances that enable it to serve its members over a wider scale. For example, the organization partnered with Universal Health Coverage in 2019 to unite global health leaders and advocate for the establishment of common goals for sustainable development. Moreover, the organization collaborates with institutions such as the Al Sagr National Insurance Company through its subsidiary, UnitedHealthcare International, to provide international health insurance coverage to employees in the Middle East (UnitedHealth Group, 2022). The health coverage is extended to the general community and the organization’s members in Saudi Arabia, Jordan, Qatar, Kuwait, Lebanon, Bahrain, the Sultanate of Oman, and other Middle Eastern nations. Nevertheless, the organization has partnered with several other key players worldwide to improve healthcare service provision.
The Strategic Fit of the UnitedHealth Group’s Business and its Corporate Strategies
The UnitedHealth Group has maintained an impressive track record due to its strategic corporate strategy and culture guided by high ethical attributes and integrity. The healthcare landscape has significantly changed over the past years and is currently characterized by a high demand for high-quality health services (Lensing et al., 2019). Moreover, cutting-edge technology and information sharing have enabled the general population to alter their health-seeking behaviors, resulting in a rise in the number of individuals seeking medical attention. Therefore, UnitedHealth Group’s initiatives toward providing the highest possible quality of care and customer value are fit for its business and corporate strategies as they allow higher customer satisfaction and sustainability.
The UnitedHealth Group’s product diversification strategy is also beneficial for its business as it allows it to serve a larger consumer base and drive up its profits. For example, apart from offering health benefits and coverage to individuals, employees, and organizations, the company control several hospitals, public health organizations, and a pharmacy that provides prescription drug services to its members (Buchwald, 2022). Moreover, the company ventures in medical information technology, scientific research, and consultation, allowing it to become an industry leader in global health and medicine. Moreover, its diversification plans are aligned with its expansion strategy as the organization continuously improves interoperability and encourages interprofessional collaboration between experts in its subsidiaries and partners.
The UnitedHealth Group’s Globalization strategy and partnerships with other leading medical corporations have allowed it to maintain its position as a powerful brand. Currently, the organization has contracts with more than 6000 health institutions and over one million medical practitioners worldwide. It provides services to more than 74 million individuals, which is made possible by its global networks and partnerships (Crow, 2020). Additionally, the organization heavily invests in information technology, equips its members with advanced technological solutions, and offers training on how to enhance the effectiveness of systems. As a result, they can easily manage their global networks, communicate with their shareholders, and serve customers more efficiently using online platforms and application solutions.
Conclusion
The UnitedHealth Group is an American organization with branches worldwide. Although the company’s main business is offering health coverage and benefits to individuals and its members, the organization engages in diverse initiatives across the healthcare industry. The UnitedHealth Group’s mission is to facilitate high-quality and accessible health care to individuals in various regions. Therefore, the organization works with partners all over the world to enhance healthcare service delivery and improve its systems. The organization is headed by a Board of Governors who oversees critical decision-making. However, all subsidiaries have managers and officials who run processes within the supply chain. Over the years, the UnitedHealth Group has shifted its focus toward innovation and technological advancement in healthcare. As a result, it has been ranked one of the top technological healthcare companies in the US. Its corporate strategy is based on offering value and establishing positive consumer relationships, enabling it to gain trust and significant market influence. Thus, its business approaches have played a major role in its success and position as a global brand.
References
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Crow, C. 2020. Strategic Audit of Optum. Undergraduate Honors Thesis. University of Nebraska-Lincoln. Web.
Jahn, J., & Bohnet-Joschko, S. (2022). Health insurers: Evolving into ecosystem-based service companies. Journal of Business Strategy,(ahead-of-print). Web.
Kim, M. (2021). The Optum-Atrius transaction: A model for reviewing mid-sized health transactions. American Journal of Law & Medicine, 47(4), 523-530. Web.
Lensing, C. J., Garth, S. R., Ehlert, B. W., Duerr, J. M., Wagner, C. D., Kapov, K. A., Jones, J. P. & Hoversten, S. R. (2019). Empowering patients and providers with more and better data: Innovative concepts in type 2 diabetes management. Diabetes Spectrum, 32(4), 323-330. Web.
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