abhishreshthaa
Abhijeet S
Coventry Health Care, Inc. (Coventry) (NYSE: CVH) is a diversified national insurer in the United States.
Based in Bethesda, Maryland, Coventry operates health plans, insurance companies, network rental and workers’ compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators. It is currently ranked the third most successful prescription drug plan service in the United States.
Strengths
* Dominant position in Colombia
* Limited competition. There are few acquisition targets as the food retail sector in Colombia is highly informal (60% mom & pops)
* Diversification in formats and target customer
* Strong brand and format recognition - top of mind
* Geographical coverage
* Corporate governance
* Strategic alliance with foreign partner (Casino)provides exchanges of best practices
* Strong client base in loyalty program
Weaknesses
* Manageability with too many formats and brands
* Duplicated administrative structure with the acquisition of Carulla- Vivero
* Outdated stores in need of remodeling
Opportunities
* Strong economic environment in Colombia boosting the consumer sector
* Increasing purchasing power from families and easier access to credit should increase consumption of higher value-added non-food items
* Population is expected to migrate from shopping in informal to formal retail
* Small portion of the population with access to banking and credit services
* JV with Bancolombia to boost traffic to stores, ticket as well as increase ROE with the introduction of additional products such as insurance and personal
loans.
* Follow-on providing funds to accelerate further
expansion and store remodelings
Threats
* Improving consumer stance in Colombia is attracting
new entrants to the retail sector (Carrefour and Falabella from Chile)
* Brand repositioning could exclude some loyal customers
* Downturn in Colombia's economic stance could limit potential growth of the retail sector
* Diversification of business could divert focus
Based in Bethesda, Maryland, Coventry operates health plans, insurance companies, network rental and workers’ compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators. It is currently ranked the third most successful prescription drug plan service in the United States.
Strengths
* Dominant position in Colombia
* Limited competition. There are few acquisition targets as the food retail sector in Colombia is highly informal (60% mom & pops)
* Diversification in formats and target customer
* Strong brand and format recognition - top of mind
* Geographical coverage
* Corporate governance
* Strategic alliance with foreign partner (Casino)provides exchanges of best practices
* Strong client base in loyalty program
Weaknesses
* Manageability with too many formats and brands
* Duplicated administrative structure with the acquisition of Carulla- Vivero
* Outdated stores in need of remodeling
Opportunities
* Strong economic environment in Colombia boosting the consumer sector
* Increasing purchasing power from families and easier access to credit should increase consumption of higher value-added non-food items
* Population is expected to migrate from shopping in informal to formal retail
* Small portion of the population with access to banking and credit services
* JV with Bancolombia to boost traffic to stores, ticket as well as increase ROE with the introduction of additional products such as insurance and personal
loans.
* Follow-on providing funds to accelerate further
expansion and store remodelings
Threats
* Improving consumer stance in Colombia is attracting
new entrants to the retail sector (Carrefour and Falabella from Chile)
* Brand repositioning could exclude some loyal customers
* Downturn in Colombia's economic stance could limit potential growth of the retail sector
* Diversification of business could divert focus