Henry Schein 2014 Annual Report Download - page 22

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everage our value-added products and services. We continue to increase cross-selling efforts for key
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roduct lines utilizing a consultative selling process. In the dental business, we have significant cross-selling
opportunities between our dental practice management software users and our dental distribution customers.
In the animal health business, we have opportunities to cross-sell practice management software and other
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roducts. In the medical business, we have opportunities to expand our vaccine, injectables and other
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harmaceuticals sales to health care practitioners, as well as cross-selling core products and electronic health
record and practice management software. Our strategy extends to providing health systems, integrated
delivery networks and other large group and multi-site health care organizations, that include physician
clinics, these same value added products and services. As physicians and health systems closely align, we
have increased access to opportunities for cross-marketing and selling our product and service portfolios.
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ursue strategic acquisitions and joint ventures. Our acquisition strategy includes acquiring businesses and
entering into joint ventures complementary to ours that will provide, among other things, additional sales to
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e channeled through our existing distribution infrastructure, access to additional product lines and 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
health care services. Between 2014 and 2024, the 45 and older population is expected to grow by approximately
12%. Between 2014 and 2034, this age group is expected to grow by approximately 23%. This compares with
expected total U.S. population growth rates of approximately 8% between 2014 and 2024 and approximately 15%
between 2014 and 2034.
In the dental industry, there is predicted to be a rise in oral health care expenditures as the 45 and older segment
of the population increases. There is increasing demand for new technologies that allow dentists to increase
productivity, and this is being driven in the U.S. by lower insurance reimbursement rates. At the same time, there is
an expected increase in dental insurance coverage.
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.
The animal health market, impacted by growing companion pet ownership and care, as well as increased focus
on safety and efficiency in livestock production, continues to provide additional growth opportunities for us. We
support the animal health practitioners we serve through the distribution of biologicals, pharmaceuticals, supplies
and equipment and by actively engaging in the development, sale and distribution of veterinary practice
management software.
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.
Additionally, we are expanding our dental full-service model, our animal health presence and 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 190 countries around the world.
For information on revenues and long-lived assets by geographic area, see Note 15 of “Notes to Consolidated
Financial Statements,” which is incorporated herein by reference.