Essay on Johnson & Johnson: Overcoming Challenges for Improved Performance

Paper Type:  Essay
Pages:  4
Wordcount:  946 Words
Date:  2023-02-09


From previous research and analysis, Johnson and Johnson company has undergone a series of the problems that in one way or another obstructs its performance. With the growth of other related companies, it has faced stiff competition. The condition has led to consistent reduction of market shares as well as profit margins. It has also triggered other issues such as low wages and weak production system. The paper will, therefore, discuss the channels and methodologies that would be employed to reverse the situation. It will also suggest appropriate measures or strategies be used in the management of anticipated constraints that might arise in the future within Johnson and Johnson Company.

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Some of the issues that Johnson and Johnson Companies faces, depends on the following factors, political instability, and corruption, technology, socio-economic, environmental differences, and legal frameworks of different countries (Bambo, 2019). As a result of their impact on Johnson and Johnson Company, the adversities needs to be addressed. There are several ways to address the issues and how to manage them. They include absorption of other companies and merging, Conducting research and substantial capital investment, and finally employ persuasive ways of marketing.

Absorption and company merging

The strategy can be employed to reduce competition as well as monopolizing the company in terms of the price setting and quality production (Walsh, 1989). Under the strategy, Johnson and Johnson Company can make special arrangements counter companies on how to buy their shares or even their entity to face them out. Similarly, it may also merge with other companies by combining efforts and capital. Through the process, the company may be able to face out stiff competition from the nourishing and growing infant companies as well as from the existing ones.

The process would provide huge capital that few companies can be able to raise. Therefore, they will be unable to compete with the company, thus give up in the production of pharmaceutical products. It would also aid the company to attract new technologies as well as efficient methodologies to the production process. The company will gain more powers to rule over the market and production strategies, thus increasing profits as well as wages to the employee.

Research Conducting and Capital Investments

Johnson and Johnson Company would also address issues of socio-economic and political instabilities by conducting thorough research as well as establishing the merits of setting a new branch of the company in that particular environment. Through proper analysis and research, the company would be able to understand different legal rules of different countries and how to best it fits in production over a particular state (Chandy & Williams, 1994). That way, the company may avoid establishing its branches over countries that limit its production and profit maximization techniques.

Cultural issues and social class should also be addressed through research investigation. The research would establish the norms, beliefs, practices as well as values of the society in analyzing the effectiveness of the product to be presented. It would also give information on how to differentiate the product as well as rebranding. The research provides proper knowledge and perception of society against certain practices of ethnicity and racism. In this particular analysis, Johnson and Johnson Company would employ laborers from the community in which discrimination is highly practiced through racism and ethnicity, thus reduction of objections of the product.

Marketing strategies

Finally, new techniques and approaches to winning large market share would be the last option to provide a great menace over other companies and good reputation of the company's brand. Therefore, Johnson and Johnson Company would be able to reduce competition while maximizing sales. Different strategies such as media advertisements as well as creating affiliation programs. Johnson and Johnson Company should also employ other promotion programs where its target customers are given discounts and gifts. The strategy, therefore, would attract more sales of the products and services. On the other hand, the company can provide services at subsidized prices to compete with other companies out of the market.

Through different forms of marketing, the company will also find it easy to sterilize and stabilize market prices (Cavusgil & Zou, 1994). In other words, it will act as the determinant of the costs of pharmaceutical products across the world. In return, the company will, therefore, be able to win and face out the competition.

In conclusion, through proper implementation of the strategic methodologies, the company will be able to shoot to peak once more. Acquisition, absorption, and company mergers provide huge capital that, in return, will boost the performance of the operation. It involves pulling resources together that promotes the reduction of the cost operation. Similarly, research and analysis conduction on both the target market and environment under which the company is to be established is of paramount importance. It provides the basis of the company and methodologies to address consumers' behavior as well as culture restructuring. Therefore it is a vital step that Johnson and Johnson Company require for successful operations. Finally, marketing strategies reform is also a crucial step to use in minimizing the reduction in market shares.


Bambo, G. (2019). Johnson and Johnson: PESTEL Analysis. Business Policy and Strategy (MGMT-522-01A).

Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-performance relationship: an investigation of the empirical link in export market ventures. Journal of Marketing, 58(1), 1-21.

Chandy, P. R., & Williams, T. G. (1994). The impact of journals and authors on international business research: a citational analysis of JIBS articles. Journal of International Business Studies, 25(4), 715-728.

Walsh, J. P. (1989). Doing a deal: Merger and acquisition negotiations and their impact upon target company top management turnover. Strategic management journal, 10(4), 307-322.

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