Henry Schein 2009 Annual Report Download - page 20

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8
Business Strategy
Our objective is to continue to expand as a value-added distributor of healthcare products and services to
office-based healthcare practitioners. To accomplish this, we will apply our competitive strengths in
executing the following strategies:
•
I
ncrease penetration of our existing customer base. We have over 600,000 customers worldwide and we
intend to increase sales to our existing customer base and enhance our position as their primary supplier.
•
I
ncrease the number of customers we serve. This strategy includes increasing the number and productivity
of field sales consultants, as well as using our customer database to focus our marketing efforts.
•
L
everage our value-added products and services. We continue to increase cross-selling efforts for key
p
roduct lines. In the dental business, we have significant cross-selling opportunities between our dental
p
ractice management software users and our dental distribution customers. In the medical business, we
have opportunities to expand our vaccine, injectables and other pharmaceuticals sales to medical
distribution customers, as well as cross-selling core products and practice management software with these
key products. In the animal health business, we have opportunities to cross-sell practice management
software and other products.
•
P
ursue strategic acquisitions and joint ventures. Our acquisition strategy includes acquiring businesses
complementary to ours that will provide, among other things, additional sales to be channeled through our
existing distribution infrastructure, access to additional product lines and networks of field sales consultants
and an opportunity to further expand into new geographic markets.
Markets Served
Demographic trends indicate that our markets are growing, as an aging U.S. population is increasingly
using healthcare services. Between 2009 and 2019, the 45 and older population is expected to grow by
approximately 16%. Between 2009 and 2029, this age group is expected to grow by approximately 30%.
This compares with expected total U.S. population growth rates of approximately 10% between 2009 and
2019 and approximately 21% between 2009 and 2029.
In the dental industry, there is predicted to be a rise in oral healthcare expenditures as the 45 and older
segment of the population increases. Cosmetic dentistry is another growing aspect of dental practices as new
technologies allow dentists to offer cosmetic solutions that patients seek. At the same time, there is an
increase in dental insurance coverage. Approximately 56% of the U.S. population now has some form of
dental coverage, up from 49% in 1996.
We support our dental professionals through the many SKUs that we offer, as well as through important
value-added services, including practice management software, electronic claims processing, financial
services and continuing education, all designed to help maximize a practitioner’s efficiency.
There continues to be a migration of procedures from acute-care settings to physicians’ offices, a trend
that we believe provides additional opportunities for us. There also is the continuing use of vaccines,
injectables and other pharmaceuticals in alternate-care settings. We believe we have established a leading
position as a vaccine supplier to the office-based physician practitioner.
We believe our international group is a leading European healthcare supplier servicing office-based
dental, medical and animal health practices. We are in the process of implementing SAP software across
continental Europe. Additionally, we are expanding our dental full-service model and our animal health
presence in Europe, as well as our medical offerings in countries where opportunities exist. Through our
“Schein Direct” program, we also have the capability to provide door-to-door air package delivery to
practitioners in over 200 countries around the world.
For information on revenues and long-lived assets by geographic area, see Note 13 of “Notes to
Consolidated Financial Statements,” which is incorporated herein by reference.