Johnson and Johnson, commonly called J&J for short, is one of the world’s well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company’s most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment and contact lenses. The largest of the three segments is pharmaceuticals.
Johnson and Johnson is poised for growth on many fronts. Their short-term outlook is bright due to a lead position in the drug-coated stent market. They should also see a substantial increase in prescription drug sales from the recently enacted Medicare regulation, which will grant prescription drug coverage to more Americans. In the long run, J&J should see consistent sales growth fueled by the aging demographics in the United States. Moreover, the medical supplies and services needed by the elderly population will increase simultaneously with the aging of the large baby boomer population. While there is no doubt that J&J is a corporation that has gone a long way and due to its reliability, culture and growth will continue to do well, analyzing the effectiveness of their current strategy is still essential. The question of whether J&J should become more centralized in order to adapt to the changing hospital industry needs to be addressed. Because of the changes in the hospital sector and because of the changes that distributors underwent in order to meet the hospital changes, J&J inevitably needs to change as well and become more centralized. While I do not think it is possible or even necessary for J&J to become completely centralized, J&J should consider the benefits of becoming more centralized. If J&J continues to be as decentralized as they are they will have a hard time adapting to change, communicating within the organization and contact within the organization will decrease as well.
In the recommendation portion of this case analysi...
... middle of paper ...
With regard to the internal environment, it is important to analyze J&J’s strengths and weakness. After reading J&J’s website, I was overwhelmed with the strengths that J&J possess. J&J is one of the main competitors in the race to produce the best and most widely used stent. They produced Cypher, a device that is implanted in arteries to help keep arteries open and prevent them from getting clogged. J&J currently posses the largest portion of the coronary stent market with their Cypher stent. Approved in April of 2003 and launched in May, Cypher is the only drug-coated stent to be supported by numerous tests, including four large-scale clinical trials involving 1,800 patients. In tests, Cypher proved more effective than bare metal stents at preventing re-blockage. Another strength that J&J possesses is having high barriers to entry. Entrance into the pharmaceutical industry is difficult. Pharmaceutical companies require large fixed costs, large set up costs and large research and development costs. While this does not insure that new companies will not enter their market, it does give J&J some safety measure at being able to prevent and/or compete with new entrants.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Johnson & Johnson researches, develops, manufactures, and sells products in health care. The company was founded by three brothers, Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson, in New Brunswick, New Jersey, in 1886 (J&J website). Alex Gorsky is currently the chairman and chief executive officer of the company. Johnson & Johnson is known for providing a competitive pricing strategy. In the United States, Johnson and Johnson strives to keep their net price increases for health care products within the Consumer Price Index.... [tags: Johnson & Johnson Case Study]
2815 words (8 pages)
- Johnson & Johnson is a successful company in the health industry : Johnson & Johnson a company that, through the years, has been diversifying and expanding worldwide as leader in the market for health products , consumer, professional , ethical pharmaceuticals and industrial . The vision is "To be the world's most successful company in the healthcare , prioritizing the needs of the people " their corporate philosophy is having Responsibility for internal, external customers and Justice for Suppliers and distributors, with a Commitment to the shareholders and Respect for environmental protection and natural resources Part of Johnson & Johnson strengths are the Innovation Efficiency and Satisf... [tags: health industry, health products, healthcare]
518 words (1.5 pages)
- ... Gross profit margin Gross margins uncover what amount of an organization gains contemplating the expenses that it acquires for preparing its items or administrations. Gross margin is a great evidence of how beneficial an organization is at the most principal level, how effectively an organization utilization its assets, materials, and labor. It is typically communicated as a percentage, and demonstrates the productivity of a business before overhead expenses; it is a measure of how well an organization controls its expense.... [tags: financial, profit, ratios]
1761 words (5 pages)
- The study of the Johnson County should be considered solely for illustrative purpose only. However the results are indicative of the kinds of conclusions to be generated from a detailed modeled based on a more specific and comprehensive data inputs from users. Over the entire planning period of 30 days, shale gas field (10 wells completed) located in Johnson County, Texas produced approximately 9.2 million gallons (34826 m3) of HF wastewater. Figure 2 shows the optimized aggregate HF water management plan for the field development, where the x-axis denotes the progression of the well completion schedule and y-axis shows the total volume of HF wastewater produced by completed wells on each da... [tags: Water, Water supply, Water pollution, Hydrology]
1146 words (3.3 pages)
- Global Household Brands Case Executive Summary BMF consulting has evaluated the structure of Global Household Brands, in order to give recommendations for possible growth and stability for the future of the company. In this analysis, I have gathered information regarding financial statements, internal and external factors in Global Household Brands competitive structure, and strategic priorities in order for the company to grow in the household product industry. The analysis of the internal factors shows that Global Household Products have strong distribution throughout the industry and have a core competency for developing quality products.... [tags: Business Analysis Strategy, case study]
1648 words (4.7 pages)
- Running Head: MINDFULLNESS BASED THERAPY Page 1 Case Study Analysis using Mindfulness-Based Therapy Raquel Johnson Grand Canyon University PCN-500-0501 Counseling Theories December 14, 2014 Case Study Analysis using Mindfulness-Based Therapy Demographics Mindfulness therapeutic approach is defined as being able to pay attention in the present moment without passing judgment. It is the representation of not what you are doing but the state of being in which you are alert of the present while not involving your inner and outer setting to come in between.... [tags: Anxiety, Psychology]
832 words (2.4 pages)
- Starbucks Case Analysis Table of Contents I. Executive Summary II. Company Profile III. Marketing Analysis IV. Competition V. Company Product and Services VI. Recommendations/Conclusion I. Executive Summary In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants.... [tags: Business Analysis ]
1309 words (3.7 pages)
- Introduction The purpose of this paper is to discuss and analyze the practices conducted by law enforcement during the investigation of the murder of Ashley Smith. The following pages will discuss the crime scene investigation, the evidence collection, the investigative steps following the initial crime scene investigation, the interviews of witnesses and suspects, and other strategies performed by the acting case investigators. Constitutional challenges have surfaced regarding specific pieces of critical evidence and a section of this paper will analyze the admissibility of this evidence.... [tags: Scott Jones, Frederick Johnson]
2999 words (8.6 pages)
- Introduction Jane “Bitzi” Johnson-Miller is the prototypical, hard-charging Texas gal who has used grit and determination to work her way to the top of her field. She was the owner of a successful Dallas software company that she sold to Austin-based Dell Computer for $2.5 million in 2014. As a result, by selling to Dell, she was able to keep the money in Texas. Like many Texas women, not only is she a self-made, she earned her status as a business and community leader while a single mother successfully raising two children to adulthood.... [tags: Texas, United States, Economics, George W. Bush]
1639 words (4.7 pages)
- Case Study: Victoria's Secret OVERVIEW Victoria's Secret, one of the world's most recognizable fashion brands, established itself in the Bay Area in the early 1970s. Originally owned by an ambitious Stanford graduate looking for a comfortable and high-end retailer to buy his wife lingerie, Roy Raymond opened the first store at Stanford Shopping Center. Styled after a Victorian boudoir, Raymond's success prompted him to open three other locations, a catalog business, and a corporate headquarters within a few years.... [tags: Business Market Analysis Management]
1408 words (4 pages)