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United Health Group SWOT Analysis

United Health Group SWOT Analysis

United Health Group is an American international healthcare and insurance company. The company was established in 1977 to create a network-based health plan for older adults. United Health Group specializes in providing healthcare products and insurance services worldwide through its two subsidiaries, Optum and UnitedHealthcare (United Health Group, 2023). Optum was established in 2011 to offer pharmacy care services, data analytics, healthcare delivery, population health, and healthcare operations. It is subdivided into OptumHealth, which offers secondary and primary care; OptumInsight, which offers operations, technology, and data analytics services; and OptumRX, which offers pharmacy services. The UnitedHealthcare subsidiary includes the UnitedHealthcare Employer and Individual segment, which offers health services and plans for large national employers; UnitedHealthcare Global, which offers medical benefits to individuals living in various countries across the world; UnitedHealthcare Community and State, which targets the medically underserved, economically disadvantaged people and people with no employer-funded healthcare insurance; and the UnitedHealthcare Medicare and Retirement, which offers well-being and health services to people aged 65 years and above (United Health Group, 2023). The company’s products and services are categorized into provider directories, healthcare insurance plans, and provider networks. The provider directory includes maintaining updated directories for healthcare providers. Provider networks, on the other hand, include negotiation with healthcare providers in contract negotiation. The company’s mission is to create a healthcare system that benefits everyone and helps people live healthy lives. Its vision is to promote diversity and inclusion in healthcare. Over the past decade, United Heath Group has maintained a competitive advantage in the global healthcare industry despite stiff competition. This report reviews United Health Group’s SWOT analysis of how specific strengths, weaknesses, threats, and opportunities promote the company’s competitive advantage.

SWOT Analysis Diagram


·         Market leader in the provision of healthcare plans

·         Innovative and diversified products and services

·         Strong customer-focused and operations approach

·         Strong brand awareness

·         Affordable insurance plans

·         High customer satisfaction levels

·         Broad distribution network

·         Skilled staff


·         Poor marketing strategies

·         Delays in the payment of insurance claims

·         Limited diversity in the workforce



·         Personalized healthcare plans

·         Increase in customer spending on healthcare insurance

·         Government incentives for healthcare insurance companies


·         Uncertainty in market conditions

·         Regulatory policies

·         Stiff competition


 An Evaluation of Internal Factors in Promoting a Competitive Advantage

One internal factor that promotes United Healthcare Group’s competitive advantage is innovative and diversified products and services. The company uses innovative products and services to attract more customers and increase its global market share, thus creating a competitive advantage. The company also uses innovative and diversified products and services to retain existing customers by meeting all customer needs. Parniangtong (2017) states customer retention contributes to a high competitive advantage by increasing repeat purchases, customer referrals, and positive reviews. United Health Group uses customer retention to increase customer reach, resulting in a high competitive advantage.

The second internal factor that promotes the company’s competitive advantage is being a market leader in providing healthcare plans. United Healthcare Group uses its position as a leader in providing healthcare plans to attract more customers and expand into new markets, thus creating a competitive advantage. The company has also grown its financial resources by entering new markets worldwide. The financial resources are essential in developing diversified and innovative products and services and constantly upgrading them to meet customers’ needs, thus creating long-term competitive advantage.

United Healthcare Group also derives its competitive advantage from its broad distribution network. The company uses its broad distribution network to supply its products and services to many customers worldwide, thus expanding its market share. A large market share enables the company to make more sales than competitors, thus creating a competitive advantage. United Health Group has also established employee training programs to equip its employees with the skills and competencies needed to offer the best services, hence creating customer satisfaction. Maintaining customer satisfaction is essential in creating a competitive advantage because it increases customer loyalty.

An Evaluation of External Factors in Promoting a Competitive Advantage

External factors play a significant role in maintaining a competitive advantage because they impact decisions on the type of product the company should produce based on prevailing economic conditions and changes in customer behavior. One of the external factors that promotes a competitive advantage for United Healthcare Group is technological advancements. The company can use technological advancements to gather and analyze customer data when creating personalized healthcare insurance plans. Personalized healthcare plans are essential in creating a competitive advantage because they will ensure the customers’ needs and preferences are met. For instance, the company can use data analytics technology to evaluate a customer’s financial status based on their spending habits to design proper insurance payment schedules, thus creating customer satisfaction, which is essential in gaining a competitive advantage.

The second eternal factor that promotes a competitive advantage for the company is economic trends. For instance, an increase in consumer spending on healthcare insurance can enable the company to attract many customers, thus increasing its competitive advantage. The third factor is the increase in the elderly population in most countries where the company offers its products and services. According to Lopreite & Zhu (2020), the aging population has increased healthcare spending because of the high demand for long-term care and medical services. Therefore, the United Healthcare Group can use the increased demand for medical services to sell more healthcare insurance plans and offer secondary and primary care to older adults, thereby creating a competitive advantage. Another factor that promotes a competitive advantage for United Health Group is government regulations. Most governments in developing and developed countries focus on creating policies that increase access to healthcare and support services such as insurance. For instance, the United States government promotes healthcare through healthcare insurance programs such as Medicare and Medicaid. Therefore, United Health Group can partner with government agencies to offer healthcare insurance services to a specific group of people, such as older people, minorities, and people with disabilities, thus creating a competitive advantage.


United Health Group is among the leading healthcare insurance companies in the world. The company has maintained the top position among companies delivering healthcare insurance plans by maintaining good customer relationships, expanding its brand awareness through expansion into various global markets, offering affordable insurance plans, and offering innovative and diversified products and services. The company also has a broad distribution network that enables it to reach customers worldwide, thus developing a large market share. United Health Group also invests in its employees to create a competitive advantage. For instance, the company has training programs to equip employees with the knowledge, skills, and competencies needed to offer the best customer service. Good customer service enables the company to maintain customer satisfaction, hence creating a competitive advantage. However, the company should focus on addressing issues that could reduce its competitive advantage moving forward. The issues include poor marketing strategies, delays in the payment of insurance claims, and limited diversity in the workforce. United Health Group should also focus on leveraging opportunities that could increase competitive advantage, such as personalized healthcare plans, increased customer spending on healthcare insurance, and government incentives for healthcare insurance companies.


Lopreite, M., & Zhu, Z. (2020). The effects of the aging population on health expenditure and economic growth in China: A Bayesian-Var approach. Social Science & Medicine, 265, 113513.

Parniangtong, S. (2017). Gaining sustainable competitive advantage. Competitive Advantage of Customer Centricity, 1–18.

United Health Group. (2023). Welcome to UnitedHealth Group. English- UnitedHealth Group.


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Successful businesses regularly analyze their processes to ensure they’re operating as efficiently as possible and maintaining their competitive advantages. Although you can assess a company in many ways, a common technique is the SWOT analysis. In this assignment, you will practice using a SWOT analysis to better understand the factors involved in making business decisions that promote sustainable competitive advantage.

United Health Group SWOT Analysis

United Health Group SWOT Analysis

Select and research a company from the 2019 Fortune 500 list that demonstrates a sustainable competitive advantage in the marketplace.

Evaluate the selected company’s sustainable competitive advantage using the SWOT analysis technique.

Write a 700- to 1,050-word modified SWOT analysis that includes the following:
An introduction with a detailed description of the company
A SWOT analysis diagram that includes strengths, weaknesses, opportunities, and threats
An evaluation of how specific internal factors (strengths and/or weaknesses) support and/or promote a competitive advantage; examples may include:
Financial, physical, or human resources
Access to natural resources, trademarks, patents, or copyrights
Current processes (employee programs or software systems)
An evaluation of how specific external factors (opportunities and/or threats) support and/or promote a competitive advantage; examples may include:
Market trends (new products or technology advancements)
Economic trends (local and/or global)
Regulations (political, environmental, or economic)
Conclusion with an evaluation of how the company has retained its competitive advantage

Include APA-formatted in-text citations and a reference page with at least 2 sources. Note: You may include your textbook as 1 of the sources.

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