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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Johnson & Johnson is a health care enterprise that is featured throughout three different market segments. Johnson & Johnson strive to innovate products, services, and ideas to help advance the well-being and health of people. J&J has over 265 locations, which spans across 60 different countries and employ more than 126,000 people. Johnson & Johnson is currently the world's sixth-largest consumer health company, sixth-largest biologics company, and fifth-largest pharmaceuticals company.

The Johnson & Johnson Consumer division creates over-the-counter products and drugs for first-aid and nutritional uses, in addition to skin, baby, and oral care. The J&J Medical Devices division provides orthopedic products, contact lenses, surgical equipment, and monitoring devices, etc. The Pharmaceuticals division offers numerous drugs that can help with pain, blood disorders, autoimmune diseases, and neurological conditions.

History

Johnson & Johnson was founded in New Brunswick, New Jersey in 1886 by the three brothers Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. Two years later, J&J published “Modern Methods of Antiseptic Wound Treatment”. This rapidly became a standard for teaching antiseptic surgery. During the same year, J&J released the first commercial first aid kit. In 1894, they launched maternity kits for mothers and babies to make childbirth safer. The maternity kit also included Johnson's Baby Powder. The first massively produced sanitary protection products for women were manufactured in 1897. In 1898, J&J was the first company to massive produce dental floss. After a hurricane struck Texas in 1900, J&J began its tradition of disaster relief by donating money and products. In 1901, they published First Aid Manuals, which were distributed within their First Aid Kits. Hours after the San Francisco Earthquake of 1906, J&J donated money and products to help the citizens. Earle Dickson, a Johnson & Johnson employee, invented the BAND-AID in 1920, which was then released to the market one year later. It was revolutionary due to being the first commercial bandage that customers could put on themselves. In 1924, J&J opened their first operating company outside of the United States in the United Kingdom, followed by Mexico in 1930 and Australia in 1931. In 1931, J&J created the first prescription contraceptive gel due to the lack of trusted family planning products. Dr. Phillip Levine, who discovered the human rH factor, became a member of the Ortho Research Laboratories. During the same year, Johnson & Johnson became a public company on the New York Stock Exchange.

In the 1950's, Johnson & Johnson developed the Baby Shampoo with No More Tears formula, opened their first operating center in India, and acquired McNeil Laboratories and Cilage Chemie AG, which gave the company a notable presence in the emerging pharmaceutical industry. Janssen Pharmaceutical N.V. of Belgium joined J&J in 1961, whose founder is considered one of the most innovate pharmaceutical researchers of the century. During the 60's and into the early 70's, operating companies were started to help treat schizophrenia, personal care, and family planning. In the late 1970's, Johnson & Johnson began a partnership with the city of New Brunswick, New Jersey to help revive the city. Beginning in the late 70's and throughout the 80's, J&J expanded into the areas of vision care, diabetes management, and mechanical wound closure, along with being a founding partner of Safe Kids Worldwide, and developed the first disposable contact lenses. Over the past twenty-five years, Johnson & Johnson has developed the Palmas-Schatz stent, has begun working toward HIV/AIDS wellness, acquired Pfizer Consumer Healthcare, sponsored the United Nations' Millennium Development Goals, and launched the first United States' free mobile health service.

Financial History SWOT Analyses

Strengths – Johnson & Johnson

Johnson & Johnson is ranked as one of Fortune's World's Most Admired Companies. In 2011, J&J was bestowed with the Humanitarian of the Year Award by the United Nations for its leading role in its Healthy Mother, Healthy Child strategy. They hold a strong brand presence in advertising and print media for numerous products. Remote villages are supplied by J&J, therefore they have a superb distribution network. They have been on the Top 100 Companies for Working Mothers for the past 26 years, which is when it was first started. Mothers across the globe trust Johnson & Johnson. Their worldwide sales have increased by fourteen percent. J&J has a large and outstanding portfolio of high quality products. Johnson & Johnson also sells its products in over 175 countries, has operations in over 57 countries, and has approximately 250 subsidiary companies, which can help with products in the global market because of cultural consideration. The J&J business model uses altered entrepreneurial values to help them keep a strong hold in the market place, while also working strongly within the scientific community.

Weaknesses – Johnson & Johnson

Market fluctuations may disrupt operations due to being a global brand. Being a global brand may also be a weakness since retailers could sell expired products. The pharmaceutical market has been under pressure to reduce prices. Market demand for some of Johnson & Johnson's products have decreased, some of which have been replaced by generic products due to expired patents. Internal counterfeiting and theft of drugs has also been a weakness for the industry as a whole.

Opportunities – Johnson & Johnson

An opportunity for Johnson & Johnson would be to continue increasing their brand presence. Acquiring other small companies would also be opportunistic. Increasing the penetration of the rural market and creating more portable products for the economy class would be beneficial, as well. Johnson & Johnson has new pharmaceutical products which are currently under regulatory review, therefore their product portfolio can be expanded. Business growth can be had by developing new diagnostics and medical devices. The World Trade Organization has created rules that prevents the availability of generic drugs, consequently this will assist Johnson & Johnson by giving them the chance to regain lost profits that may have been lost as patents expired.

Threats – Johnson & Johnson

Johnson & Johnson has a few threats that can put the enterprise at risk. Over-promoting products may give the public the perception of it being generic. The high-level of competition within the pharmaceutical industry creates a threat for Johnson & Johnson because generally the first company to enter with a patent is successful. The Inexpensive competitors and substitutes may also pose a risk along with imitation brands whose names sound similar to Johnson & Johnson's brand name products.

Strengths – Reckitt Benckiser

One of Reckitt Benckiser's strengths is that they have received numerous awards for their products. RB has a fervent and experienced workforce and competent management team. They have portable packing, which leads to a price advantage. Reckitt Benckiser sells products in over 180 countries and has operations in over 60. With a solid and secure research and development infrastructure, Reckitt Benckiser has been innovative. RB has powerful promotion with advertising and print media.

Weaknesses – Reckitt Benckiser

Reckitt Benckiser faces similar weaknesses as Johnson & Johnson. The industry has extremely high-level competition, therefore expansion throughout the market is sluggish. Their brand image may be affected due to the sale of expired products from retailers.

Opportunities – Reckitt Benckiser

An opportunity for Reckitt Benckiser would be to generally improve their distribution system. Developing new brands for rural areas and the economy class could also be an opportunity for them. It would be beneficial for Reckitt Benckiser to look into increasing their market share by acquiring other companies.

Threats – Reckitt Benckiser

As with all enterprises in this industry, the threat of low cost substitutes is high. Exchange rate variations between currencies may also pose a risk. The purchasing power of the public has decreased because of economic slowdown. Laws and policies enacted by the United States government can influence product execution, as well.

Strengths – Pfizer

Pfizer is spread throughout over 50 countries and is one of the largest pharmaceutical companies in the world. They have acquired and merged with other sizable brands, in turn increasing their own brand reputation, not to mention that Pfizer has well-built brands that are globally known. Pfizer is an extremely innovative company with outstanding research and development. They also supply jobs to over 100,000 people.

Weaknesses – Pfizer

Pfizer was involved in one of the most immense healthcare frauds for marketing its drug illegally, and by doing so tarnished their brand image. There is also strong competition throughout the pharmaceutical industry, therefore it is difficult for Pfizer to increase their market share.

Opportunities – Pfizer

An opportunity for Pfizer is to increase global awareness of healthcare needs. Pfizer should also work to increase the demand for superior healthcare solutions. Working toward strategic agreements with other pharmaceutical organizations and enterprises may be beneficial for Pfizer to extend its research capabilities.

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