Henry Schein 2014 Annual Report Download - page 21

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7
Products
The following table sets forth the percentage of consolidated net sales by principal categories of products
offered through our health care distribution and technology reportable segments:
2014 2013 2012
Health care distribution:
Dental products (1) .......................................................................... 51.9 % 52.3 % 53.4 %
Animal health products (2) ............................................................. 27.9 27.2 26.0
Medical products (3) ....................................................................... 16.8 17.2 17.4
Total health care distribution ..................................................... 96.6 96.7 96.8
Technology:
Software and related products and
other value-added products (4) ........................................... 3.4 3.3 3.2
Total ....................................................................................................... 100.0 % 100.0 % 100.0 %
(1) Includes infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants,
gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, equipment
repair and high-tech and digital restoration equipment.
(2) Includes branded and generic pharmaceuticals, surgical and consumable products and services and equipment.
(3) Includes branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products,
equipment and vitamins.
(4) Consists of practice management software and other value-added products, which are distributed primarily to health care providers,
and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services.
Business Strategy
Our objective is to continue to expand as a global value-added provider of health care products and services to
office-based dental, animal health and medical 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 1 million 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 in all of our
operating segments. In the dental business, we provide products and services to traditional dental practices as
well as new emerging segments, such as dental service organizations and community health
centers. Leveraging our unique assets and capabilities, we offer solutions to address these new markets. In
the medical business, we have expanded to serve customers located in settings outside of the traditional
office, such as urgent care clinics, retail and occupational health settings. As settings of health care shift, we
remain committed to serving these practitioners and providing them with the products and services they need.