a) Cardinal Health has grown through acquisitions (inorganic growth). What trade-offs, strengths, and weaknesses are associated with this growth strategy?
b) Were all of the acquisitions driven by the same strategic logic?
Although acquisition has been a major key in the success of Cardinal Health's progression, there are some strengths and weaknesses that can be noted along with some trade-offs that have been made. From the perspective of strengths, one of the major strengths that Cardinal has accomplished through multiplying its acquisitions and resources is gaining a wide array of resources and expertise across the healthcare spectrum that reaches multiple countries and enables Cardinal to meet the increasing needs of healthcare providers and resolve some of their most challenging situations (www.cardinal.com, 2012).
An additional strength is Cardinals large and expanding customer base which is supported by the company's vast array of services and products that they can now offer. Many of these products are specialty products such as nuclear pharmaceuticals, specialty packaging services, ...
Being one of the largest distributors in the medical and pharmaceutical industry with such a vast array of products and offerings enables Cardinal to pass along cost savings to customers and reduce its supply costs on many of its products (Teagarden, 2011).