Analysis of Laboratory Corporation of America
LabCorp prides itself in having a well-established brand for its products and services. Such occurs because the company has a skilled workforce, which contributes significantly in the provision of high-quality products and services. Thus, the brand image for the firm is established significantly. The management team of the organization also explores the sales and distribution networks to gather insights on offering efficiency in the market environment. Such includes training and equipping the business units with resources, which aid in the achievement of market success for the firm. Furthermore, the company has a solid financial strength, which helps it in engaging in research and development (Hough, 2016). Therefore, the organization has a chance of utilizing modern developments in information and technology to offer the best services in society. The adoption of technology ensures that the organization has a significant reduction on its labor costs.
The organization engages in a business, which has a characteristic of continuous growth and development. Laboratory testing is something, which will never end. Thus, there is a future in the business activities of the firm. Moreover, the organization has a global presence since it is located in 5 continents out of 7. The firm also operates in a market environment where there are strong barriers of entry. The indication is that other companies trying to venture in the business environment of LabCorp find the move limiting them because there are no adequate resources to support their venture. There are also restrictions and regulation of the players in the industry. This one thing that the company has utilized to create its massive presence. The corporation has also created a strong domestic market, which supports continuous marketing of its products and services.
Weaknesses
LabCorp has the weakness of putting its equipment for production in different locations and notifying its vendors of the relocations and closures. The firm does not lose money in sharing the information, but the move has a significant impact on the expected revenue. An example of an organization suffering from such actions is Ricoh USA. As LabCorp is doing this, it offers low payment for the services, which Ricoh provides. The outcome of this is the creation of the imbalance on the relationship between the two companies. Moreover, the company has a strong investment for research and development. The investment takes a lot of resources, which could be used in the provision of services to the public. The result is that the investment significantly reduces the profit margin for the company. As the profits are declining, investors in the company are getting scared by the unfavorable business environment for the firm (Khan, 2013).
The firm also needs to have a large number of employees to ensure that it is in a good position to provide expected services. Such indicates an additional cost in training, development, and retention of the workforce. Furthermore, the firm is operating in an environment where the economic barriers are present, which tend to regulate the conduct of business. There is also a limitation in the number of customers who are regulated by the money and the health care demands. Thus, the target market is small. The situation occurs as the company continues to operate in an unfavorable market environment, which cannot support the bottom and top line growth (Khan, 2013). On the same note, the upper management is small for such a company, which is very large.
References
Hough, J. (2016). LabCorp looks ready to pass every test. Retrieved from: http://www.barrons.com/articles/labcorp-looks-ready-to-pass-every-test-1474096547
Khan, S. (2013). Stay away from this Laboratory. Retrieved from: https://www.thestreet.com/story/12156856/1/stay-away-from-this-laboratory.html
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