SWOT and PESTEL Analysis of United Health Groups

SWOT and PESTEL Analysis of United Health Groups

United Health Groups is best known to be a diversified health company that is mainly dedicated for helping people to live a healthier life. The health network of the organization include approximately 7, 00000 physicians in about 5200 hospitals. Along with that, there are 119,000 dental providers with 66,000 pharmacies. The organization is an American for-profit managed health care company that is mainly based on Minnetonka, Minnesota. United Health group is one of the largest healthcare company in the world having almost 115 million customers. SWOT and PESTEL analysis of the United Health Groups can be evaluated to understand the competitive position of the company. SWOT and PESTEL analysis is effective for identification of the risks and uncertainties in an organization.

SWOT Analysis

SWOT analysis can be described as an useful tool or technique that help in better evaluation of the strength and weakness of an organization, which, can in turn help in identification of the threats and opportunities linked with a system or an organization. SWOT is further considered to be a powerful business tool that works for uncovering the opportunities that can be easily exploited.  

The opportunities and the threats that are linked with the business of United Health groups can be addressed by analysis of the major strengths and the weakness linked with the  organization. The SWOT analysis of United Health groups are indicated in the table below.

PESTEL Analysis

Analysis of the Political, Economical, social, technological, environmental and legal factors linked with an organization can be termed as PESTEL analysis. This analysis is important to monitor the major macro environmental factors which has a significant impact on the business of an organization. This framework is mainly used for analysis of the macro environmental factors

Political-

• There is a risk of military invasion
• Increase in the level of corruption
• Enforcement of the legal framework
• Regulations in pricing

Economic-

• It has the exchange rate an stability of the host country currency
• Effective economic growth rate
• Intervention of the government in free market and in related healthcare

Social-

• The organization is linked with demographics and skill level of population
• It is related to class structure, hierarchy and power structure of the society

Technological Factors-

• The recent technological developments help in offering innovative products
• Technological impact is there on the cost structure of the health care plans industry

Environmental Factors-

• United Health Groups should consider the climate change
• United Health Groups should invest on waste management in healthcare sector
• United Health Groups should support renewable energy

Legal Factors-

• The organization might be affected by Health and Safety Law
• The organization should consider all laws related to data protection
• The organization should consider health and safety law.