Centene Corporation is one of the largest publicly traded healthcare companies in the US. It operates through two segments – Managed Care and Specialty Services. Learn how the company became one of the top players in the industry and discover major insights through the company’s SWOT analysis in this presentation.

1. A Case Study Analysis of
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2. Overview
• Centene Corporation is a multinational healthcare
company based in Missouri, US.
• The company provides a wide range of services to
government-sponsored healthcare programs.
• It is the second-largest publicly traded corporation in
the state of Missouri.

3. Overview
• Centene currently ranks #51 in the Fortune 500 list.
• The company operates through two major segments:
Managed Care and Specialty Services.

4. Centene’s Managed Care Segment
The managed care segment provides with health
plan coverage to individuals through government-
sponsored programs, including:
• Medicaid
• The State Children’s Health Insurance Program (CHIP)
• Long Term Care
• Foster Care
• Medicare

5. Centene’s Managed Care Segment
• Health Insurance Marketplace
• Dual-eligible individuals (Duals)
• Supplemental Security Income Program also known
as the Aged, Blind or Disabled (ABD) program

6. Centene’s Specialty Services Segment
The Specialty Services segment of Centene covers all
its specialty companies which offer a great range of
healthcare programs and products to:
• State programs
• Correctional facilities
• Healthcare organizations
• Employer groups and other commercial organizations
• Its own subsidiaries

7. What Makes Centene One of the Largest
Healthcare Companies in the US?
The Affordable Care Act (ACA) specifies that
everyone in the US needs to carry health insurance
or pay a tax penalty.
As a public health insurance company, Centene took
this opportunity to bolster its footprint in the
healthcare sector.

8. What Makes Centene One of the Largest
Healthcare Companies in the US?
Till 2019, Centene sold Obamacare to 1.9 million
Americans across 20 states. It further plans to
expand in 10 more states.
Throughout the years, Centene has continued to
strengthen its position in the government sector.
Currently, Centene is the top insurer in the ACA
exchange market.

9. What Makes Centene One of the Largest
Healthcare Companies in the US?
On January 2020, the company closed $17B
acquisition of WellCare, a long-time rival of Centene.
The acquisition of WellCare would give Centene a
total of 12 million Medicaid members.

10. The SWOT Analysis of

11. Strengths
Strong brand portfolio:
Since 1984, the company has invested in building a
strong brand portfolio. Currently, it offers Medicaid,
Medicare, Health Insurance Marketplace,
Correctional Healthcare and more.

12. Strengths
Strong dealer community:
Centene has built a culture among distributors and
dealers where they don’t just promote the products
of the company but also invest in training the sales
team for better sales output.

13. Strengths
High level of customer satisfaction:
With its dedicated customer relationship
management department, the company has
achieved a high level of customer satisfaction and
good brand equity.

14. Strengths
Great performance in new markets:
The company has been quite successful in its
ventures in new marketers. The expansion has
helped the company to build a new revenue stream
and diversify the economic cycle risk.

15. Weaknesses
Unclear USP:
The marketing of products needs more work. Even
though the product is successful in terms of sales,
the positioning and unique selling proposition of the
product is not clearly defined.

16. Weaknesses
Low amount of investments in R&D:
The investments made in the research and
development department is below the fastest
growing contenders in the industry.
Even though the company is spending above the
industry average on its R&D department, it has not
been able to match the innovations shown by other
companies.

17. Weaknesses
Lack of investment in new technologies:
Given the scale of expansion and the different
regions the company is planning to expand into, the
company needs to invest more money in technology
to incorporate the processes across the path.
The current investment in technologies is not
compatible with the company’s vision.

18. Weaknesses
Lack of diversification in the workforce:
The workforce at the company is concentrated with
mostly local works, a very few people from other
racial backgrounds.
A lack of diversification in the company makes it
difficult for people from other racial backgrounds to
adjust to the workplace.

19. Opportunities
New trends in consumer behavior:
The new trends in the behavior of the consumers can
open up a new market for Centene.
It comes as a great opportunity for the organization
to build new revenue streams and diversify into new
product segments too.

20. Opportunities
Inflation:
The inflation rate has been low for and is expected to
remain low in the next two years.
This is an opportunity for the company as its cost of
inputs would remain low for the next couple of years.

21. Opportunities
Increase of health consciousness:
Consumers in the industry are now becoming more
health-conscious, and this number is growing every
year.
This is something which the company can take
advantage of by manufacturing products that are
beneficial to consumer health.

22. Opportunities
More use of social media:
With the increase in the number of internet users, it
is a great opportunity for the company to expand its
presence online, and use the internet to interact with
its customers.

23. Threats
Suppliers:
Over the years, the bargaining skills of the suppliers
have increased. However, the number of suppliers
has decreased.
It means the costs of inputs could go up for the
company.

24. Threats
Increasing competition:
The competition within the industry, putting
significant pressure on prices set for the services and
products at Centene.
This could lead to reduced revenue for the company
of it adjusts to the price changes.

25. Threats
Changing consumer requirements:
The consumer taste is constantly changing, which
puts pressure on companies to continuously change
their products to meet the needs of these
consumers.

26. Threats
Political uncertainties:
The political uncertainties in the country could
become an obstacle in business for Centene
Corporation.
The uncertainties can further hinder the
performance of the company, and cause the business
to incur unnecessary costs.

27. Conclusion
With the acquisition of WellCare, the company is
expected to make an impact on more number of
people in America.
However, the company is not very successful outside
the US. While it is considered a weakness of the
company, they can actually turn this into an
opportunity.

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