Johnson Swot Analysis Essay

This SWOT analysis focuses on Johnson & Johnson, the world’s most comprehensive and broadly based healthcare product manufacturer with more than 200 operating companies. In 1886, three brothers, Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson, found the company in New Brunswick, New Jersey. The company has a portfolio of subsidiaries that made medical devices, medical diagnostic equipment, biologics, pharmaceuticals as well as healthcare products. Johnson & Johnson is involved with numerous causes and advertising campaigns, which encourage healthy lifestyles, and support those people who care for the health of others. Johnson & Johnson is one of the worlds most admired and trusted companies. There is an increasing pressure

within the pharmaceutical markets to reduce prices in line with medical budgets and maintain patent expirations, which are weaknesses, as well as threats for the company. They have highlighted new developments in pharmaceutical products, which provide the opportunity to grow, as well as meeting a broader range of meeting customer needs since their products fall under three categories.

Three brothers, Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson, found Johnson & Johnson in 1886. Johnson & Johnson is a multinational company, it is one of the leading pharmaceutical, and healthcare companies in the United States. The company’s revenue increased from $71.3 billion in 2013 to $74.3 billion in 2014. Johnson & Johnson has three major segments Pharmaceuticals, medical devices and diagnostics, and consumer products. The company has more than 265 operating companies in some 60 countries; also, Johnson & Johnson ranks number one in the top ten biotechnology and pharmaceutical companies in the world. The Credo lists the values that guide their decision-making. Illustrated in the Credo, is their value to put the needs and well-being of the people they serve first. Johnson & Johnson is committed to working with parents, healthcare professionals, scientists, and experts in public health to ensure that their products continue to achieve the highest of their standards.
The company is involved with numerous causes and advertising campaigns, which encourage healthy lifestyles, and support those people who care for the health of others. Johnson & Johnson is positioned as one of the companies with best corporate reputation in the United States, which is considered to be a strength for the company. They also use a flexible business model that allows quick adaptation to market changes and trends, focusing on entrepreneurship, problem solving techniques, and innovation. Their business model based on entrepreneurial values adds to the company’s competitiveness in the market place. Worldwide sales continue to grow which indicate a strong position in the market. Johnson & Johnson takes advantage of markets that are emerging, which enables further growth opportunities for the company. Their research and development base is wonderful, which is the company’s strength for surviving in the pharmaceutical sector.
Another strength currently possessed by Johnson & Johnson is the use of independent offices working as standalone units in multiple markets of the world provides them with the opportunity to develop concepts with cultural considerations, which can prove important when dealing with diversity. Brand presence in the form of advertising media and print media for a number of products is a positive for Johnson & Johnson. The company has plenty of current strength as mentioned above.
However, like any company currently in the market they also have weaknesses.

There is an increasing pressure within pharmaceutical markets to reduce prices in line with medical budgets, as well as maintaining patent expirations. Being a global brand means disturbance in the operations when the market fluctuates. There is an internal weakness in the pharmaceutical industry, which includes theft and counterfeiting of drugs, and therefore is a weakness of Johnson & Johnson. While Johnson & Johnson has these specified weaknesses they deal with, there are even more opportunities which gives them an advantage for strengthening their position in the market. They already have the strength of meeting a broader range of customer needs with their products falling under three categories. Expiring patents on brand name drugs lead to an increase in the sales of generic drugs, Johnson & Johnson could capitalize upon this opportunity. With diagnostic markets growing, this positions the company in a good place as well as new medical therapies and findings that align with some of the company’s primary capabilities. Threats the company faces is with product recalls, extreme competition in pharmaceuticals that results usually in the first to enter is generally where success is determined. With technology developments, biotech concepts might possibly move the traditional pharmaceutical methods out of the

market.