Johnson & Johnson SWOT Analysis Analyzes, Johnson & Johnson is the world’s largest health care company. It is also the highest paid drug company in the world. J&J remains at the top of the Big Pharma list of powerful corporations with more than $82 billion in annual revenue in 2020. Its top products include Tylenol, Stelara, Invega and various medical devices.
Did You Know?
Johnson & Johnson’s Credo has been translated into numerous dialects and languages, starting from Arabic and Arabic to Vietnamese which has 342 phrases in English and the word 415 in Romanian along with 607 terms in Chinese language.
On a brisk January day in 1886, James found himself aboard a train passing through New Brunswick, New Jersey. He looked out his window and noticed a “for rent” sign on a nearby factory building. That building became Johnson & Johnson’s first home. It opened its doors with just 14 employees: eight women and six men.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Johnson & Johnson.
Johnson & Johnson At A Glance – Johnson & Johnson SWOT Analysis
Company: Johnson & Johnson
Founders: James Wood Johnson | Edward Mead Johnson | Robert Wood Johnson
Year of establishment: January 1886
CEO: Alex Gorsky
Headquarters: New Brunswick, New Jersey, United States
Employees (Dec 2020): 126,500
Ticker Symbol: JNJ
Annual Revenue (Dec 2020): $82.06 Billion
Profit net income (Dec 2020): $15.30 Billion
Products & Services: Medical Devices | Pharmaceutical | Consumer Packaged Goods
Company Website: www.jnj.com
Top Johnson & Johnson Competitors
Competitors: Reckitt Benckiser | Unilever | Procter and Gamble | Abbott | Bristol-Myers Squibb | Colgate Palmolive | Merck | Novartis | Pfizer
Johnson & Johnson SWOT Analysis – SWOT Analysis Of Johnson & Johnson
SWOT Analysis Of Johnson & Johnson analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Johnson & Johnson SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Johnson & Johnson SWOT Analysis. Below Is The Detailed SWOT Analysis Of Johnson & Johnson.
Johnson & Johnson Strengths – Johnson & Johnson SWOT Analysis
1. Global Dominance: Johnson and Johnson is the most renowned health care provider in the world and operates greater than 265 active businesses in over 60 countries worldwide. It is a market leader in diagnostics and medical devices pharmaceutical products, as well as consumer health products.
2. Highly Influential: Johnson & Johnson is one of the most influential businesses around the globe. It is a major factor in the economic well-being of several countries, which includes the US markets for stocks.
3. Highly Experience: With more than 130 years in business, Johnson & Johnson understands the requirements to meet the demands of its target market completely. Being more knowledgeable in the field of health is an important advantage and advantage over its competitors.
4.Extensive Product Portfolio: The range of products includes purell, through Tylenol, Listerine, baby products, Destin, Visine, Clean & Clear, Neutrogena, Band-Aid, Stayfree, and Acuvue Lenses, all these products increase the firm’s stability and competitiveness in the market.
5. Strong Community Engagement: Johnson & Johnson engages fully in international matters as a concerned citizen, focusing on issues that affect the global health. Starting with to the Healthy Child Initiative with the UN to the malaria fight in collaboration with the AU and fighting the disease with Johnson & Johnson and US government The company is always on the cutting edge in global health issues.
6. Robust Supply Chain: Johnson & Johnson has an extensive supply chain which ensures that the availability of all raw materials and that the final products are efficiently distributed to retailers, outlets and pharmacies around the globe.
7. Brilliant Partnerships: The majority of companies insist on producing each successful product by themselves which could be disastrous. Johnson & Johnson understands the failure of this method and chooses to collaborate with the top companies in certain regions and areas of expertise to create highly efficient products.
8. Effective Marketing: Johnson & Johnson’s marketing strategy is based on making use of emotions to foster trust and build long-lasting relationships among mothers with their brands. This method has been successful in promoting the product and brought in clients from around the world.
9. Strategic Acquisitions and Mergers: The faster a company can get into lucrative and new markets, the more quickly it will grow. Johnson & Johnson strategically acquires and joins with large and small businesses for fast and lucrative growth.
Johnson & Johnson Weaknesses – Johnson & Johnson SWOT Analysis
1. Unethical Operations: Lawsuits aimed at reducing the adverse consequences from Johnson & Johnson’s Xarelto and talc-based baby-powder and the opioid-addictive Norman drugs, as well as others are expected to cost around 15 billion dollars. In the end, every lawsuit undermines trust and damages its image.
2. Lack of Diversification: Johnson & Johnson’s worldwide revenue is generated by three divisions that include pharmaceuticals, medical devices and diagnostics, and consumer. There’s a lack of diversification. In the event that all of its eggs fall into one basket Johnson & Johnson can suffer massive losses.
3. Overdependence on Successful Products: When a drug is introduced and has grown to the top of the market, there’s no other way to go except downwards. Johnson & Johnson’s dependency on $3.5 billion per year from Zytiga until the year 2018 when the court approved the sales that were generic for the medication, leading to a dramatic drop in sales.
Johnson & Johnson Opportunities – Johnson & Johnson SWOT Analysis
1. Rebalance Portfolio: With pharmaceuticals and medical devices that account for over 80 percent of income, Johnson & Johnson can concentrate on increasing sales of products for health and wellness consumers. A rebalanced portfolio can boost the total revenue.
2. Expand your reach through Acquisition: Johnson & Johnson’s revenues grew dramatically between 2016 and 2020 due to acquisitions such as Tylenol. The company can grow again by acquiring.
3. Focus on Emerging Markets: Around 57 percent in the Johnson & Johnson’s worldwide pharmaceutical sales originate directly from US. The company is able to focus on growing sales of pharmaceuticals across Latin America, Africa, and Asia.
4. Target the Lower-Class: Johnson & Johnson can introduce lower-cost versions or provide discounts for its medicines to make it more appealing to the poor.
Johnson & Johnson Threats – Johnson & Johnson SWOT Analysis
1. Stiff Competition: In the range of Reckitt Benckiser through Unilever, Procter and Gamble, Abbott, and many others, the plethora of global companies that compete with Johnson & Johnson threatens profitability. If the fierce competition intensifies, Johnson & Johnson will be able to lose a significant portion of the market shares.
2. Increase in Generics: Recently Johnson & Johnson’s revenues fell after the introduction for generic variants of Zytiga were introduced into the market. If generic medicines increase significantly in the future, the company’s financial viability and longevity is at risk.
3. Stringent Regulation: Because Johnson & Johnson offers its products in various markets across the globe, the company has to adhere to a variety of regulations that are imposed by government. This isn’t helping the business.
4. New Technologically Advanced Entrants: Innovative drug companies are rapidly emerging from countries such as India. If any firm gains the ability to develop lower-cost and more efficient substitutes and retain customers, even retaining the majority is a major challenge for Johnson & Johnson.
5. Intensified Combat against Drug Abuse: The role played by drug makers in the current opioid crisis in the US could result in the implementation of stricter laws in the near future. If governments prohibit drugs made through Johnson and Johnson, this could impact the profits or even the very existence of the company.
Johnson & Johnson SWOT Analysis Overview Template
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