This comprehensive and research-based SWOT analysis of Anthem Inc. comprises in-depth insights into the company’s Strengths, Weaknesses, Opportunities and Threats. In addition, it offers useful takeaway points in the concluding note.

1. SWOT ANALYSIS
OF

2. Introduction
Anthem Inc. is a provider of health
insurance in the United States.
The company has its headquarters
situated in Indianapolis, Indiana, United
States.

3. • Anthem Inc is among the leading providers of
health insurance in the country with stock
price of US$296.00 +16.09 and revenue
amounting to 9,210.5 crores USD as on 2018.
Introduction

4. Strengths of Anthem Inc
• Cost Structure: The low cost structure associated
with the company helps it produce goods and
offer services at low price, thus making it
affordable for the consumers.
• Financial Position: Anthem boasts a strong
financial position with consecutive profits gained
in the past five years. It also has a solid asset
base that ensures better solvency.

5. • Distribution and Reach: The Company has a numerous
outlets in almost every state. It s supported by a strong
distribution network that ensures the fact that the
products are easily available to a large number of
consumers on time.
• Highly Skilled Employees: The labour force of Anthem
Inc is yet another aspect that defines the company’s
strength. The company has extensively invested in the
training of its employees, which resulted in increased
production and on-time delivery of products and
services.
Strengths of Anthem Inc

6. • Social Media Presence: The firm is said to have
strong social media presence. It has more than
million followers on three of the most famous social
media platforms including Facebook, Twitter and
Instagram.
This helps the company experience high level
customer engagement rate and low customer
response time.
Strengths of Anthem Inc

7. • Strong Product Portfolio: The Company has a strong
product portfolio where it provides products across a
wide ranging category. Anthem Inc provides certain
products are services that aren’t yet available with its
market competitors.
• Positive Return on Capital Expenditure: According to
reports, Anthem Inc. has been successfully able to
secure 100% positive return on capital expenditure.
Strengths of Anthem Inc

8. Weaknesses of Anthem Inc
• Issues with Cash Flow: There are issues
concerning proper financial planning at Anthem
Inc. There were certain instances where the
company didn’t have enough cash flow which led
them to opt for unplanned borrowing.
• Rented Property: A significant share of the
company is rented, and not purchased. This makes
the company pay large amount of rents, thus
leading to additional cost and expenditure.

9. • Scarcity of market research: It has been reported that
Anthem Inc has not conducted enough market research
within its niche since the past two years. As a result, the
company is making decisions that are based on two years
old market data.
• Diversification in workplace: The workplace culture of
Anthem is mostly populated by local employees. The lack of
enough workers across different nationalities and
diversifications make the company suffer loss of talent.
Weaknesses of Anthem Inc

10. • Low employee retention rate: Worker morale is said to be
comparatively low due to company culture and politics. Many
qualified and skilled employees have been leaving the company in
the recent years, which could eventually give rise to shortage of
talent in the company in the near future.
• High market share for a few products: Anthem Inc experiences
high market share for a few products. While most of the products
have low market share, Anthem Inc gets vulnerable to market
threats if their products with high market share suffer for any
particular reason.
Weaknesses of Anthem Inc

11. • E-Commerce: The E-commerce industry has experienced
significant growth in the recent years. This could benefit the
company as products and services could now be sold or offered
online. This, as a result, will help Anthem earn additional
revenues by opening online stores and offering their services via
digitised mediums.
• Technological Advancements: Technology, in today’s world,
comes with a lot of benefits. All manual operations could be
automated with the help of technology. In addition,
technological developments could also benefit the company by
helping them with faster data accumulation and processing via
digital platforms.
Opportunities of Anthem Inc

12. • Population Growth: Population in and around
the United States is growing and is expected to
grow in the upcoming years. This means
Anthem Inc can target more number of
potential consumers in the near future.
• Flourishing Transport Industry: The transport
industry is currently flourishing. With a
decreased transportation cost, Anthem Inc will
be able to reduce its net cost altogether.
Opportunities of Anthem Inc

13. • Subsidy on Sale: The Government has recently
announced subsidy on sale of environment-friendly
good in this particular domain. This will give Anthem a
good opportunity to focus on production of
environment-friendly goods and services with an
increased sales rate.
• Beneficial Tax Policy: The reduced tax rate policy
supported by the government is beneficial for the
company as lower amount of tax expenses will be
shelled out in the near future.
Opportunities of Anthem Inc

14. • Growth in Tourism: Growth in tourism results in an
increased tourist footfall. This means the company
will be able to target more potential customers in
order to gain better market share.
• Globalisation: With an increased globalisation graph
prevalent in today’s world, Anthem Inc shall no more
be restricted to its national boundary. This means
the company will be able to trade beyond USA, thus
ensuring better business opportunities in the near
future.
Opportunities of Anthem Inc

15. • Suppliers: The market has seen an increased rate of the
bargaining power of the suppliers. This indicates the fact
that the cost of inputs could increase for the company.
• New Competitors: With new entrants in the market,
there has been a increased rate of market competitors for
Anthem Inc. This means the company needs to buckle up
with their research methodologies with updated
strategies to be implemented.
Threats of Anthem Inc

16. • Rise in price of fuel: The rise in price of fuel has
eventually increased the input costs for Anthem. This,
as a result, has lead to an increased company cost,
thus impacting its operations from financial aspect.
• Constant technological advancements: Constant
technological advancements require employees to be
trained in accordance with the latest industry trends.
It could prove to be a threat if Anthem Inc fails to
keep up with the pace and every latest technological
development that needs to be embraced with time.
Threats of Anthem Inc

17. • Exchange Rate: It has been reported that the exchange
rate keeps fluctuating. This, as a result, impacts a
company like Anthem Inc. It has sales internationally,
while on the hand, the suppliers are local.
• Changing Consumer Taste: It’s a known fact that consumer
tastes are rapidly changing with each passing day. Thus,
the phenomenon may affect the company’s growth. With
changing consumer tastes, target audience of Anthem
may express interest in other contemporary services and
products in the healthcare insurance industry.
Threats of Anthem Inc

18. • To end with, it is to be mentioned that there
can be an overlap of strengths and
weaknesses, with a single factor acting both
as strength and weakness at the same time.
• Since the analysis does not show its
objectives, it should be used as a starting
point to create and implement strategic
decisions instead of accepting it as a closure.
Conclusion

19. • The aspects mentioned and the factors listed in the
SWOT analysis may be revisited by the company.
• Since the SWOT analysis is a static observation, it
doesn’t consider the fact that further changes could
be made in competitive environment.
• It is also to be mentioned that there are
interrelationships between external and internal
factors that the SWOT tends to overlook
Conclusion

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