SWOT Analysis of Johnson and Johnson | Business Teacher

This SWOT analysis focuses on Johnson and Johnson, a global consumer healthcare company with a portfolio of subsidiaries that made medical devices, medical

diagnostic equipment, biologics and pharmaceuticals as well as consumer healthcare products. Despite its leadership position in its industry and associated

markets, Johnson and Johnson still must continually reassess its position and strategy by examining its strengths and weaknesses as a company as well as

how effectively it can leverage the opportunities that have been identified as well as address and minimise any perceived threats to the organisation. In

this way, Johnson and Johnson can change its strategy and maintain its global leadership position in consumer healthcare products.

  • Worldwide sales continue to grow with ongoing plans for further geographic and market solution expansion to sustain sales growth.
  • Johnson and Johnson uses a flexible business model that allows to adapt quickly to market changes and trends, focusing on entrepreneurship, problem

    solving techniques, and innovation.

  • This business model has led to numerous innovative medical devices, pharmaceuticals, and other consumer healthcare product releases, further

    differentiating the company from its competitors.

  • Many of its portfolio brands are admired by a wide range of customers who regularly return to these products for reliability, quality, and value.
  • The company has enhanced its brand equity through accolades like most reputable company and one of the best companies to work for around the world.
  • Pharmaceutical companies have been criticised for their high prices, which many consumers have trouble paying so this has led to concerns over

    corporate greed.

  • There have been recent protests against some of Johnson and Johnson’s products, including its pelvic mesh implants, which have led to a damaged

    reputation.

  • The company is dependent on certain products and small niche drugs for the pharmaceutical industry.
  • Recent reports that employees of the company have stolen company secrets and information, which has undermined its efforts to create an ethical and

    responsible workplace.

  • With a diverse portfolio of solutions, there are many untapped opportunities for cross-selling products. This includes cross-selling between medical

    devices, pharmaceuticals, and diagnostics related to care-giving and specific therapies for oncology, diabetes, and other health issues.

  • There are opportunities for further acquisitions to strengthen its position, further diversify its product portfolio, expand its territories, add to

    its resource and research capabilities and grow revenue streams.

  • There are new medical therapies and findings that align with some of the company’s core capabilities, providing new opportunities for additional market

    share and leadership.

  • The diagnostic market appears to be growing, which positions Johnson and Johnson as a first mover in many applications.
  • Some countries are now banning generic medicine, which gives Johnson and Johnson an advantage.
  • The company’s success with any product release, including medical devices, pharmaceuticals, and healthcare products are often tied to regulatory

    approval more so than market acceptance. This can also vary from country to country, which further complicates the potential for success with new

    products.

  • There have been many product recalls, which can threaten the company’s credibility.
  • Generic pharmaceutical products at a much reduced price are a significant threat to Johnson and Johnson.
  • U.S. competition has the perception of being more reliable than Johnson and Johnson with many products, especially in light of product recalls and

    protests about the adverse side effects of some of its products.

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