1.

Johnson & Johnson is one of the Worlds Most Admired Companies

2. The United Nations awarded Johnson & Johnson the 2011 Humanitarian of
the Year Award for our leading role in its Healthy Mother, Healthy Child
initiative.
3. One of the Top 100 Companies for Working Mothers every year since the list
was initiated 26 years ago.
4. Brand presence in form of advertising media and print media for a number of
products.
5.Excellent distribution network as the brand is supplied to remote villages and
faraway places
6.J&J is a brand trusted by mothers the world over

Strength

7. Has an excellent product portfolio and high quality offerings

8. It includes some 250 subsidiary companies with operations in over 57
countries and products sold in over 175 countries
1. Maintaining a global brand can pe problematic as retailers can cause sale of
expired products

Weakness

2. Being a global brand means operations are disturbed by market fluctuations

1. Acquisitions of other smaller companies and increasing broad brand
presence.

Opportunity

2. Bringing out a range of more portable products for economy class and
increasing rural penetration
1. Excessive promotion of any product making it almost generic.
2. Spurious brands with the name similar to existing brand name

Threats

3. Availability of cheap substitutes and low priced competitors.

Competition

Competitors

1. Reckitt Benckiser
2.Paras
3.Himayala

Johnson & Johnson

Parent Company

Johnson & Johnson

Category

Health care product and Pharma

Sector

FMCG

Tagline/ Slogan

The Family Company

USP

Innovative healthcare products and trusted brand

STP

Segment

Health care segment

Target Group

Mostly urban families and hospitals and clinics

Positioning

Promise to healthcare

Strengths
A Substantial Marketing Arsenal
Johnson & Johnson can call upon a network of subsidiaries armed with
significant sales and marketing prowess, as well as expertise in a number of
therapy areas. The company possesses a global sales force which serves to
attract joint venture possibilities.

Opportunities

Wide Range of Potential Cross-selling Opportunities

Johnson & Johnson is in a position to strategically develop a myriad of cross
selling opportunities. Using the disease life cycle as a base the company could
exploit its product line in CV, oncology, diabetes and I&I therapy to formulate
linkages between patents and care-giving resulting in greater efficiency.
Maximizing its balance between Pharmaceuticals, Diagnostics, and Medical
Devices could result in increased revenues.
Potential to Exploit Biologics Market
The addition of further biologics to its portfolio can serve as a buffer as mall
molecule patents expiries. J&J is experienced in the development and
commercialization of biologicsincluding the therapeutic proteins Procrit and
Natrecor, and monoclonal antibodies Remicade, ReoPro, Simponi and Stelara.
This represents an opportunity to gain key IP, product rights or strengthen
discovery capabilities. In July of 2009 Johnson & Johnson was selected by Elan
to form a joint venture for the development and commercialization of these
products. In addition, J&J acquired an 18.4% equity stake in the company.

Threats
Dependence on the Success of Launch Products
Many new launch products are vulnerable to the uncertainty of regulatory
review and ultimate market benefits may vary substantially from forecast,
therefore, a reliance upon launch products potentially represents a threat to
Johnson & Johnsons outlook.

Negative Impact of Recent Product Recalls

Johnson and Johnson has the misfortune of having to recall of more than 40
medicines recently. FDA inspectors required the company to recall the
childrens medications after discovering the company had not looked into
dozens of consumer complaints about black or dark specks in Tylenol and
other products. The company stands to take a hit to its sterling reputation as
congressional lawmakers are blasting the companys competence and integrity.
Caring for the world, one person at a time inspires and unites the people of
Johnson & Johnson. We embrace research and science bringing innovative
ideas, products and services to advance the health and well-being of people.
Employees of the Johnson & Johnson Family of Companies work with partners
in health care to touch the lives of over a billion people every day, throughout
the world. More . . .
Strategic Acquisitions
Johnson & Johnson has maintained a stable financial position by utilizing cash
reserves to finance timely corporate acquisitions. Its Triple A Credit Rating
represents a company able to take advantage of opportunities that arise without
being limited by burdensome levels of debt.
Product Diversification
The Johnson & Johnson pharmaceutical portfolio, and ts large Medical Devices
& Diagnostics (M,D &D) and Consumer Health divisions serves to reduce
dependence upon any one area. The company plans to continue this broadening

through 2008-14. This diversification allows a wider range of choice when

pursuing opportunities with the greatest growth prospects.
Positive Revenue Growth Projections
The potential of an impressive number of new product launches and the promise
of achieving forecast sales is said to bode well for Johnson & Johnson, helping
it weather the recent decline in prescription pharmaceuticals and projecting a
turn-around through 2010. An increase at 1.8% CAGR across 200814 is
believed to be achievable.

Weaknesses
Dependence on the Success of Launch Products
Many new launch products are vulnerable to the uncertainty of regulatory
review and ultimate market benefits may vary substantially from forecast,
therefore, a reliance upon launch products potentially represents a threat to
Johnson & Johnsons outlook.
Reliance on Small Molecule Drugs
Compared to biologics, small molecules are notably more impacted by generic
competition. As such, although the Johnson & Johnson is engaged in producing
new small molecule products, when coming off-patent, declines are still
forecast. This is particularly the case in the US, where generic erosion rates are
most aggressive. Johnson & Johnsons small molecule drug sales declined in
2008 and are forecast to fall further into 2012. Teses issues reflect concerns

expressed across the pharmaceutical industrythe necessity of finding

replacements for billion dollar products as they mature represents an daunting
task.
Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer
packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones
Industrial Average and the company is listed among the Fortune 500.
Johnson & Johnson is headquartered in New Brunswick, New Jersey with the consumer division
being located inSkillman, New Jersey. The corporation includes some 250 subsidiary companies
with operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson
had worldwide sales of $65 billion for the calendar year of 2011.[3]
Johnson & Johnson's brands include numerous household names of medications and first
aid supplies. Among its well-known consumer products are the Band-Aid Brand line
of bandages, Tylenol medications, Johnson's baby products,Neutrogena skin and beauty
products, Clean & Clear facial wash and Acuvue contact lenses.
On December 31, 2012, the Food and Drug Administration approved Sirturo (bedaquiline), a
Johnson & Johnsontuberculosis drug that is the first new medicine to fight the infection in more than
forty years.[4]
Contents

History[edit]

Robert Wood Johnson

Inspired by a speech by antiseptic advocate Joseph Lister, Robert Wood Johnson joined his
brothers James Wood Johnson andEdward Mead Johnson to create a line of ready-to-use surgical
dressings in 1885. The company produced its first products in 1886 and incorporated in 1887.
Robert Wood Johnson served as the first president of the company. He worked to
improve sanitation practices in the nineteenth century, and lent his name to a hospital in New
Brunswick, New Jersey. Upon his death in 1910, he was succeeded in the presidency by his brother
James Wood Johnson until 1932, and then by his son, Robert Wood Johnson II.
Robert Wood Johnson's granddaughter, Mary Lea Johnson Richards, was the first baby to appear
on a Johnson & Johnson baby powder label.[5][6][7] His great-grandson, Jamie Johnson, made a
documentary called Born Rich about the experience of growing up as the heir to one of the world's
greatest fortunes.

Chairmen[edit]

Robert Wood Johnson I (18871910)

James Wood Johnson (19101932)

Robert Wood Johnson II (19321963)

Philip B. Hofmann (19631973)

Richard B. Sellars (19731976)

James E. Burke (19761989)

Ralph S. Larsen (19892002)

William C. Weldon (20022012)

Alex Gorsky (2012present)

Products[edit]
The company's business is divided into three major segments, Pharmaceuticals, Medical Devices
and Diagnostics, and Consumer Products. In 2013, these segments contributed 39%, 40%, and 21%
of the company's total revenues.[8]

Pharmaceuticals[edit]
The company's major franchises in the Pharmaceutical segment include Immunology, Neuroscience,
Infectious Disease, and Oncology.
Immunology products include the anti-tumor necrosis factor antibodies Remicade (infliximab), and
Simponi (golimumab) used for the treatment[9] of autoimmune diseases, including rheumatoid
arthritis, Crohn's disease (Remicade only), ulcerative colitis, ankylosing spondylitis, and other
disorders. In 2013, these two products accounted for 29% of Johnson and Johnson's pharmaceutical
revenues, and 11.3% of the company's total revenues. A third immunology product, Stelara
(ustekinumab), targets interleukin-12 and interleukin-23 and is used for the treatment of psoriasis.[10]
Key infectious diseases products include Incivio (telaprevir), a hepatitis C protease inhibitor;
Intelence (Etravirine), a non-nucleoside HIV polymerase inhibitor; and Prezista (darunavir), an HIV
protease inhibitor. Telaprevir sales are expected to decline due to the recent approval of treatment
regimens that are more efficacious and much better tolerated. Etravirine and darunavir are notable
for their high barriers to resistance development. [11][12] Darunavir in combination with HIV polymerase
inhibitors is recommended as a first line treatment option for treatment naive persons with HIV
infection[13] but etravirine is approved only for use in treatment-experienced patients, owing in part to
its requirement for twice-daily dosing.
The company's CNS products include the ADHD drug Concerta (methylphenidate extended release),
and the long-acting injectable antipsychotics Invega Sustenna (paliperidone palmitate) and Risperdal
Consta (risperidone). Invega Sustenna and Risperdal Consta were the first widely utilized longacting depot injections for the treatment of schizophrenia. Designed to address the issue of poor
patient compliance with oral therapy, they are administered by intramuscular injection at intervals of
2 weeks and one month, respectively. Only minimal improvements in outcomes relative to the oral
versions of these drugs were observed in the clinical trial setting, but some evidence suggests that
the advantages of long-acting injections in clinical practice may be greater than is readily
demonstrated in the environment of a clinical trial.[14][15][16]
Oncology products include Velcade (bortezomib), for the treatment of multiple myeloma and mantle
cell lymphoma[17] and Zytiga (abiraterone), an androgen antagonist for the treatment of prostate
cancer. In clinical trials, abiraterone treatment was associated with a 4.6 to 5.2 survival advantage
when used either before or after chemotherapy with platinum based drugs. [18]
On September 30, 2014, the company announced its plans to acquire Alios BioPharma for $1.75
billion, adding it to its Janssen Pharmaceutica division. As part of the deal the company will expand

its viral-disease portfolio by gaining access, to two Phase II drugs (specifically the respiratory
syncytial virus drug candidate, AL-8176) and several preclinical compounds.[19]

Medical Devices[edit]
Sectors in which the company is active[20] include:

Orthopaedics (DePuy Synthes): Joint Reconstruction, Trauma, Spine, Sports Medicine and
Power Tools

Cardiovascular Disease (Cordis Corporation, Biosense Webster, Inc.)

Coronary Artery Disease (Cordis)

Peripheral Vascular And Obstructive Disease (Cordis)

Neurovascular Disease (Codman Neuro, DePuy Synthes)

Arrhythmias (Biosense Webster)

Diabetes Care (LifeScan, Animas Corporation)

Self-Measured Blood Glucose Monitors (LifeScan)

Insulin Delivery Devices (Animas)

Vision Care (VISTAKON)

General Surgery (Ethicon, Codman Neuro)

Bariatric Surgery for Obesity (Ethicon)

Urologic Surgery (Ethicon)

Hernia Surgery (Ethicon)

Aesthetics (Ethicon, Mentor)

Surgical Instruments and Infection Prevention(Advanced Sterilization Products)

Ear, Nose, and Throat Conditions (Acclarent)

Consumer Health[edit]
Sectors in which the company is active[21] include:

Baby Care

Skin & Hair Care

Wound Care & Topicals

Oral Health Care

Over-the-Counter Medicines

Nutritionals

Vision Care

Corporate governance[edit]
Current members of the board of directors of Johnson & Johnson are: Mary Sue Coleman, James G.
Cullen, Dominic Caruso, Michael M.E. Johns, Ann Dibble Jordan, Arnold G. Langbo, Susan L.
Lindquist, Leo F. Mullin, William Perez, Steven S. Reinemund, David Satcher, and William C.
Weldon.[22]

Diversification[edit]
Johnson and Johnson's corporate structure is based on a decentralized management philosophy.
The company operates in three segments: Consumer Products, Pharmaceuticals, and Medical
Devices and Diagnostics. The company's central Executive Committee allocates resources and sets
strategic priorities for these divisions. Key subsidiaries include Ethicon (Medical Devices); McNeil
Laboratories, Inc., Cilag, and Janssen Pharmaceutica (Pharmaceuticals). In 2012, the Consumer
Products, Pharmaceuticals, and Medical Devices and Diagnostics divisions accounted for 22%,
37%, and 41% of the company's revenues, respectively.[23]
A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate
the strengths, weaknesses, opportunities and threats involved in a project or in
a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It
involves specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. Some authors credit

SWOT to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI
International) in the 1960s and 1970s using data from Fortune 500 companies.[1][2] However,
Humphrey himself does not claim the creation of SWOT, and the origins remain obscure. The degree
to which the internal environment of the firm matches with the external environment is expressed by
the concept of strategic fit.

Strengths: characteristics of the business or project that give it an advantage over

others.

Weaknesses: characteristics that place the business or project at a disadvantage relative

to others.

Opportunities: elements that the project could exploit to its advantage.

Threats: elements in the environment that could cause trouble for the business or
project.

Identification of SWOTs is important because they can inform later steps in planning to achieve
the objective.
First, the decision makers should consider whether the objective is attainable, given the SWOTs.
If the objective is notattainable a different objective must be selected and the process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make the
analysis useful and find their competitive advantage

Environmental record[edit]
Johnson & Johnson has set several positive goals to keep the company environmentally friendly and
was ranked third among the United States's largest companies in Newsweek's "Green Rankings".
[27]

Some examples are the reduction in water use, waste, and energy use and an increased level of

transparency.[28] Johnson & Johnson agreed to change its packaging of plastic bottles used in the
manufacturing process, switching their packaging of liquids to non-polycarbonate containers.[29] The
corporation is working with the Climate Northwest Initiative and the EPA National Environmental
Performance Track program.[30] As a member of the national Green Power Partnership, Johnson &
Johnson operates the largest solar power generator in Pennsylvania at its site in Spring House, PA.
[31]

1.

POLITICAL ENVIRONMENT CHANGING POLITICS AND

POLICIES The politics on local, regional, national, or international scales can exert strong

forces on businesses. Since Johnson & Johnson operates worldwide, it must keep track of
the political developments that may affect its business In the Czech Republic, health care is
the subject of a major political debate.
2. 12.

ECONOMIC ENVIRONMENT THE CRISIS AND THE

EURO The economic climate is also important for Johnson & Johnson to analyze in order
to predict when its business may face challenges, as well as when it can seize an
opportunity for growth. Operating in the European Union and larger European community
means that Johnson & Johnson has felt the effects of the current economic crisis. Aware of
the crisis, the company has been able to plan for its impact, and fortunately, the effects on
Johnson & Johnson have not been severe, as medical products remain necessities even in
periods of economic downturn.
3. 13.

SOCIAL ENVIRONMENT AGING POPULATION AND PUBLIC

HEALTH PROBLEMS There are two major social changes on the horizon that will both
affect Johnson & Johnson as well as provide tremendous opportunities. The first is the aging
population. The gigantic baby boomer generation, consisting of those born between 1946
and 1964, has had a huge social and economic impact on the world since its birth. The
influx of senior citizens will create huge demands throughout all realms of medical care. To
cater to the aging population, Johnson & Johnson is pioneering developments in preventative
medicine as well as less invasive surgery techniques.
4. 14. Another major social change affecting Johnson & Johnson is the phenomenon of
surging rates of various health problems, especially in developed societies but spreading
worldwide, from obesity and diabetes to cancer and mental disorders. Though highly
problematic for society, companies in medicine-related industries such as Johnson &
Johnson are finding themselves with an increasing number of people to treat and cure.
5. 15.

TECHNOLOGICAL ENVIRONMENT PROMISING

NEW FIELDS Predictive medicine, which entails predicting diseases based on genetics and
preventing them, and personalized medicine, which involves managing a patients health
based on his or her individual characteristics as opposed to following the more traditional
standards of care model, are growing fields into which Johnson & Johnson can expand.
The companys strong emphasis on research and development and its leadership in the
medical devices and diagnostics segment put it in an excellent position to become a
frontrunner in making new discoveries in these promising new technological fields.

Internal and External Environment of Johnson & Johnson

SWOT Analysis
Positive

Negative

Internal

Strengths:
Offers diversified products including baby cares,

womens sanitary products, orthopedic devices, surgical

products as well as internet publishing
Significant sales and marketing capabilities

In the process of development of oncology segment

Global sales of its products
Brand loyalty and brand image as a result of the

corporation being known since 1886

J&J has successfully differentiated itself from
competitors
J&J has more than 29,925 internet domains

Receives a support from non-pharmaceutical divisions

Introduction of Health Future 2015 brings more

customers to the till as nowadays more people are aware

of health issues.

Weaknesses
43 children over-the-counter ch
voluntary recalled, as US reveal
not fully meet the re
specifications
In 2010 J&J recalled AS
Replacement) hip prostheses fro
percentage increase in fail prosth
The corporation wastes a lo
researching and hunting for info
time replying cyclical enquiri
lectures.com)
The corporation depends high
Risperdal (medicine for schizoph
J&J faces strong pressure to red
copyright expirations

Threats
External Opportunities
Acquisition of Pfizer by J&J will help in a further growth
J&J has strong global competito
and a development of pharmaceutical branch
Has a very low market growth r
J&J can increase market share by product development
Damage of the brand due to the
and product innovation globally
Weaker consumer environme
Expansion and innovation of diagnostics and medical (news.com)
devices
Makes investments into non-co
Acquisition of other pharmaceutical companies which media with Mayas Mom
trigger a growth of J&J corporation

PEST analysis
Political Environment
The politics on local, regional, national, or international scales can exert strong forces on
businesses. Since Johnson & Johnson operates worldwide, it must keep track of the
political developments that may affect its business. For example, changes in the healthcare
system may affect to whom Johnson & Johnson needs to market, and with whom it needs
to negotiate if the company wants its products covered by the Irish healthcare system.
With the change of the Irish government the company needs to anticipate which policies
may shift. This is the best time for the Johnson & Johnson Irish branch located in Tallaght
to lobby for any policy changes regarding the companys interests and the business
environment.

Economic Environment
The economic climate is also important for Johnson & Johnson to analyze in order to pr
when its business may face challenges, as well as when it can seize an opportunity for g
Operating in the European Union and larger European community means that Johnson &
Johnson has felt the effects of the current economic crisis. Aware of the crisis, the comp
has been able to plan for its impact, and fortunately, the effects on Johnson & Johnson h
not been severe, as medical products remain necessities even in periods of economic
downturn.
Also, discussions surrounding the use of the euro and the benefits and disadvantages
common currency are debates that Johnson & Johnson should be aware. A switch to the
in Ireland in 2000 had a wide range of effects, some positive and some negative. For exa
adopting the euro made transactions with other countries more convenient (speed-up of
transactions). J&J also faces the numerous practical difficulties with tasks such as accou
that occurs with a change in currency. Keeping such economic scenarios in mind is cruc
Johnson & Johnson's success.

Social Environment
There are two major social changes on the horizon that will both affect Johnson & Johnson as
well as provide tremendous opportunities. The first is the aging population. The baby generation,
has a huge social and economic impact on the world since its birth. This trend will continue as
the generation is beginning to enter old age. The influx of senior citizens will create huge
demands throughout all realms of medical care. J &J can expect to see increased sales across all
three of its segments pharmaceuticals, medical devices and diagnostics, and consumer goods
in the coming decades, and must plan production accordingly to be able to meet the needs of this
huge generation as they enter their most medically-dependent years.
Another major social change affecting Johnson & Johnson is the phenomenon of surging
rates of various health problems, especially in developed societies but spreading worldwide,
from obesity and diabetes to cancer and mental disorders. Though highly problematic for society,
companies in medicine-related industries such as Johnson & Johnson are finding themselves with
an increasing number of people to treat and cure. As a company that invests heavily in research
and development, Johnson & Johnson has the opportunity to lead the way in finding ways to
address these serious public health issues. J&J
In response to a falling birth rate, companies like J&J, involved with the provision of babycare products, have effectively targeted these products at an adult female audience. For example,
their baby lotion is now marketed as being kind and gentle to womens skin, as well as that of
babies. This represents a response to changes in the general environment that directly affect their
industry.

Technological Environment
As many pharmaceutical drug markets become saturated and the drug strategy becomes obsolete due to the majo
changes occurring in the industry, innovation and breakthrough medical technologies are essential for finding blu
in which to compete. Predictive medicine, which entails predicting diseases based on genetics and preventing the
personalized medicine, which involves managing a patients health based on his or her individual characteristics
opposed to following the more traditional standards of care model, are growing fields into which Johnson & Jo
can expand. The companys strong emphasis on research and development and its leadership in the medical devic
diagnostics segment put it in an excellent position to become a frontrunner in making new discoveries in these pr
new technological fields.