Johnson and Johnson Company Analysis

Introduction

Johnson and Johnson is a company whose headquarters is located in the United States of and it has been in existence since the year 1886 when it was founded. The company takes part in the supply and provision of medical devices, consumer packaged goods and also pharmaceutical products. The company acts on a multinational platform and that means it has many other subsidiaries that are distributed all around the world. The main headquarters of the company are in New Brunswick, New Jersey and it has over 134,000 employees who make sure that it meets its goals and mandates when it comes to the world of business and socially interacting with the society as well.

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Some of the brands that are at Johnson's disposal are a number of household names that are under the medical platforms. One of the commonly known brands of the company is Band-Aid which has got a number of different types of bandages, Tylenol medications, Neutrogena skin, and Johnson's baby products and also beauty products that many have embraced over the past few years. The company also offers Clean and Clear which is used as a facial product especially by people who tend to have pimples and rough faces.

The fact that Johnson and Johnson is multinational company proves the reason as to why it has managed to maintain its existence in over 250 countries which are now under that Johnson's family. They are sub divided into those that deal with Consumer health care, the Medical devices and the pharmaceuticals. Some of the companies that are under that Johnson's family are Janssen Therapeutics, DePuy Synthes Ethicon, Bio sense Webster, Animas Corporation, Advanced Sterilization Products, and Johnson and Johnson Vision Care, Inc. All these companies operate under Johnson and Johnson and they make sure that the kind of services that they offer are in line with the goals that have been set by the management.

SWOT Analysis

Having in mind that Johnson and Johnson is a global company that takes part in consumer health care, it means that it has a portfolio that is full of subsidiaries that make sure all its services are offered to the consumers in the right way. In that case, it is import to check on SWOT analysis so as to have a better understanding of how it fairs when compared to other companies that are also operating in the same field. The company has been making a reassessment of its positions whenever it conducts a SWOT analysis so as to be able to make adjustments in the areas that seem to be problematic. It is such moves that have made it to remain relevant for many years and also be at top when compared to other companies that are taking part in the provision of medical products and services. The SWOT analysis is will focus on the strengths, the weaknesses, opportunities and threats.

Strengths

The company has been enjoying worldwide sales and it is continuing to grow daily having in mind that it is in the best position when it comes to taking part in trade and other transactions (Roland, 2017). The company has the ability to make an expansion of its market and all this is happening because most people believe that it is the one that can provide them with quality services and products in the industry. The other strength is that Johnson and Johnson makes use of a business model that is flexible and this has made it to adapt to the kind of trends and changes that are taking place in the market. It has also been able to focus on issue that are revolving around entrepreneurship, innovation and solving of problems because the model has a way in which it can incorporate all these issues.

The other strength is that it has many customers who have making it to develop the urge to come up with new brands over the past years of existence. In that case, most people are always ready to buy them as they believe they will get quality and value for their money. In that case it has been able to enhance the brand equity that is at its display via the accolades which has been applied by a number of reputable companies in the world.

Weaknesses

Even though Johnson and Johnson has a number of advantages and strengths that are attached to it, there are also some weaknesses that it encounters but it is putting in place measures to make sure that the phased out completely (Benson & Realist, 2015). One of the weaknesses in this case is that most of the companies that take part in the sale of pharmaceutical products sell them at high prices and this gives the consumers hard time to purchase them. In that case, it ends up making losses because the customers are now seeking other alternatives.

The other weakness is that there have been a number of people who were seen protesting over the kind of products that Johnson has been supplying to the market in different parts of the world. The people have been protesting claiming that they do not get the kind of quality that they have been expecting as they are purchasing the products. In that case, they want to be compensated so that they can be able to undertake other businesses. Such protests have damaged the reputation of Johnson and Johnson Company making it not to operate well.

The other weakness can be seen from the perspective of the employees who work for the company. There are some of who have the tendency of stealing all the ideas that they get from the company and share them with other competitors and this therefore renders it weak in the market. All the company secrets have not be kept well as there are people who are able to get them for their own use and advantage. The end result is that Johnson and Johnson Company is the one that suffers the most.

Opportunities

Johnson and Johnson has got a number of untapped opportunities that can be seen from the perspective of the diverse portfolio that it has. The company sells many products and that means there are many ways in which it can venture into investments with a firm foundation (Benson & Realist, 2015). Having in mind that it has a diverse broad portfolio, it means that it can take part in a cross-selling transaction of items with other companies or nations over the same medical services. It can also take part in cross-selling between pharmaceuticals and other health issues that need an intervention of more than one organization.

The company also has the opportunity of being able to further make an acquisition when it comes to the position of its strengths in that it can still come up with the new products to diversify its portfolio to a great extent (Pawlak, 2005). Johnson and Johnson still has the ability to expand the target markets that it has as a way of making sure that it can handle all of them and that it can make profits that come with the maximization of the all the resources that are at its disposal. In that way, it will be able to grow the revenue that it has making every year and also gain a better reception in the market.

The other opportunity is that there are a number of research activities that are taking place in the medical field and it can grasp some of the findings and use them to come up with other products (Benson & Realist, 2015). This will help in building on the core capabilities that are attached to it when it comes to the market share and leadership in that line. In addition, the domestic market is undergoing growth and this means that it will be able to get a good number of customers if at all it diversifies its applications and also makes its process to be affordable to a good number of people. Johnson and Johnson does not take part in the production and sale of generic medicine and this it means it will have an advantage when focusing on this field.

Threats

One of the threats that Johnson and Johnson faces is the fact that it has never been able to get a good market acceptance having in mind that all the pharmaceutical products that it has must go through the regulations measure. The regulation measures vary from one country to the other and that means there are products that it cannot sell in the host countries where it has some subsidiaries (FMCG, 2010). The other thereat is that the company has been experiencing many product recalls and it has never been able to deal with the issue the way it should be. The generic pharmaceutical products are sold at a low price and this poses a threat to Johnson and Johnson having in mind that it does not produce them. The kind of competition that is coming from such products is a problem that it needs to find a way to handle.

Business Level Strategy

Generic Strategy

Johnson and Johnson operates as a differentiator in most of the markets in which it operates. This can be seen from the fact that many companies are now focusing on the production of generic drugs but its main focus is on those that are made naturally using the procedures that have been put in place by the relevant authorities (Benson & Realist, 2015). This is one of the reasons as to why many claim that its products are expensive and they cannot be accessed easily. It makes sure that the kind of soap that it produces is not similar to the one that will be produced by another company. It also makes sure that the baby care products that it establishes are those that can be produced by any other company that is operating in the same market. This is one of the reasons as to why it has been able to remain at the top while focusing on companies that offer medical services in the world.

The Blue Ocean strategy has been commonly used in the current market as compared to the read ocean strategy. Johnson and Johnson has been utilising this strategy to make sure that it gets to the places where other competitors cannot. For instance, it has been venturing into the African markets that have been abandoned by many and therefore it has managed to do well when looked from the perspective of the profits that it made by the end of year 2017 (Abraham, 2008). The company choses areas that are not highly populated with companies that are offering pharmaceutical products as a way of avoiding any threat that comes in the form of competition. In that case, the Blue Ocean Strategy has helped it to get to the desired levels and also to meet objectives.

Achieve Competitive Advantage

Johnson and Johnson makes sure that it achieves its competitive advantage by handling its products in the right manner. This is where the kind of products that it produces are unique and also of the right quality. Safety and comfort have always been its main objective and it makes sure that the products prove the same (Bhasin, 2018). For instance, it uses harmless chemicals to make soap instead of alcohol in the same production. The company also achieves the competitive advantage by making sure that all its brands are complying with the needs of the people and that they are in the form that they desire. In that case, the product has got the trust of doctors, nurses, parents and all other people in the world. For instance, over 57 countries have approve the brand and they are ready to recommend it elsewhere.

The firm does not follow any strategic groups in the industry as it wants to remain unique by providing people with services that they cannot elsewhere. In that case, for it to remain in the industry life cycle for long, it makes sure that innovation and technology are its driving force. All the strategies that are put in place by the firm are based on technology which keeps on changing with time. For instance, Johnson and Johnson makes sure that each year it comes up with an innovative product. In the year 2017, it was able come up with a product that would make babies to sleep comfortably without having to keep on waking up at night. This has been made possible due to the strong research and development network that it has and also the state of art technology that it has been embracing s...