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Group members:
Priyanka Gujral (CEO),(VP Legal)
Amrik Singh (VP Communications)
Dhruv Patel ()
Manpreet kaur (VP Marketing)
Sukhjinder Purewal (VP Strategy)
Ramraj Rajakumar ( )
 Launched in 1886 by Robert Wood Johnson
 World’s sixth largest premier consumer health company
 Eighth largest pharmaceutical company and fifth largest biologics company
 Have more than 275 operating companies around the globe in more than 60 countries employing
around 128,000 people.
 Johnson & Johnson’s worldwide head office is located at Brunswick, New Jersey in United States.
 Embrace research and science and invent innovative products and ideas to advance the well-
being of people.
 Company strongly focus upon its slogan of : “CARING FOR THE WORLD, ONE PERSON AT A
TIME”.
https://www.youtube.com/watch?v=w729z7RDFa8
Introduction
Commitment of giving better living
 Baby care
 Oral Health Care
 Wound Care
 Nicotine Replacement Theory
 Skin and Hair Care
 Women’s Health
 Nutritionals
 Non-Prescription Drugs
 Eye Care
Brands and Products
PURPOSE: Bringing Science to the art
of healthy living.
VISION: Trusted to enrich the health &
wellness of every person every day.
Healthy Living.
MISSION: We will be the fastest
growing consumer healthcare
company.
CREDO: Responsibility towards
Consumers, Employees, Environment
& Stockholders
Porter’s Diamond Model
Your Logo
• No Substitute
Best Eduaction System in USA
-Hiring best professionals
Great role in establishing the goodwill of the
company
• Infrastructure & Capital
Marketing Advertisements
-Innovations
Deep knowledge with experience
Home Country Factors helped J&J in Host
Country
Similar Products & Services in
both Countries
• It serves same target audience in
both countries.
• Suitable for middle income
consumer .
• Selling same product in India.
• Same needs of consumers.
• suitable for middle income consumer
Consumers
• J&J deals with consumer product
and medical devices and
diagnostics and it is selling the
same products in USA and India.
• Health Care products for Kids.
• It is selling the similar products in
both US and India because
customer needs are same.
Type of Products
21
STRENGHTHS
• Johnson & Johnson is one of the World’s Most Admired
Companies
• The United Nations awarded J&J the 2011 Humanitarian of
the Year Award for our leading role in its Healthy Mother,
Healthy Child initiative.
• One of the “Top 100 Companies for Working Mothers” every
year since the list was initiated 26 years ago.
• Excellent distribution network as the brand is supplied to
remote villages and faraway places
WEAKNESSES
• Maintaining a global brand can be problematic as retailers can
cause sale of expired products
• Being a global brand means operations are disturbed by
market fluctuations
OPPORTUNITIES
• Acquisitions of other smaller companies and increasing broad
brand presence.
• Bringing out a range of more portable products for economy
class and increasing rural penetration
THREATS
• Excessive promotion of any product making it almost generic.
• Spurious brands with the name similar to existing brand name
• Availability of cheap substitutes and low priced competitors
SWOT ANALYSIS
• Janssen a division of J&J
dedicated to research and
development.
• Spends good money on
R&D.
• Tax issues
• Fluctuation in interest,
currency and inflation rates.
•
• High rate of Poverty
• Less awareness about
healthcare in rural
areas
• Case regarding
unapproved
psychiatric
medications
• case for promoting
unapproved
psychiatric
medications
• Slow down in govt.
decisions due to
political instability.
• Adverse changes on
foreign investment
• .Corruption and
bureaucratic
inefficiency Political Social
TechnologicalEconomic
PEST ANALYSIS
Five Forces Model
Porter’s Five Forces
Threat of new entrants is Low ,due to entry barriers such as investment
cap and tuff regulations.
The substitute's threat is High, Example of Risperdal, latent expired in
2007 and became available in generic form.
Buyer’s bargaining power is Low cost than the original version of the drug
gives consumers more capacity than company.
Industry Competition is Low, because of diversification and lack of giant
companies
Bargaining power of suppliers , diverse and wide range of lots of drugs
and pharmaceutical products supplier
Johnson & Johnson Strategy
USA & INDIA
• Most of the US based
companies are moving their
business towards India.
• Globalization is also a key
factor.
• The sales are high in India
• They also have very high
comparative advantage
• Proper supply chain
management.
• Cheap labour and
abundance of raw materials
Johnson and Johnson
Cost Differentiation
Broad
Narrow
Recommendations
In order to grow and expand in India it has to take a strict care towards its safety measures
otherwise it can completely lose its image.1
J&J should boast several strong nutritional brands with the emerging markets in India demanding
nutritional products as new middle classes emerge, would increase its presence in one of the most
attractive markets of the world at present.
2
3
J&J should open “innovation centres” in world's leading innovation hotspots such as India, with one-stop
access to science and technology experts at Johnson & Johnson who can facilitate collaborations
across its pharmaceutical, medical device and diagnostics and consumer companies”.
Recommendations
In India, J&J should open consumer care centres in which they should appoint health care
consultants to explain about J&J products or to solve any query or give any information.4
J&J in India, should focus on expansion of its medical and diagnostics field.
5
The company should focus to enhance their future growth and consolidate their overall management by
launching the advanced products and services in India in the near term.6
Q1. Will J&J be able to get its brand image and faith back in India after the recent
incident of license cancellation from opening up new plant in Mumbai due to access
amount of presence of “ethylene oxide” harmful chemical in baby’s talcum powder?
Q2. What should J&J do to gain more market share and increase its sales in India and
in which sector from its own fields of products and brands it should emphasize more
to get higher profit?
Questions For You
• avakadu.eu. (2012, January). Retrieved from avakadu.eu website:
http://avakado.eu/dev/node/2585
• blogjnj. (2007, December 27). Retrieved from blogjnj website: http://www.blogjnj.com/2007/12/
• Business - standards. (2013, November 26). Retrieved from Business - standards website:
http://www.business-standard.com/search?type=news&q=J+Chandurkar
• Carroll, D. (2013, March 23). The Motley Fool. Retrieved from The Motley Fool Website:
http://www.fool.com/investing/general/2013/03/23/can-johnson-johnson-turn-around-this-lagging-
busin.aspx
• en.wikipedia.org. (2013, November 18). Retrieved from en.wikipedia.org website:
http://en.wikipedia.org/wiki/Johnson_&_Johnson?
• Forbes. (2012, 05 11). Retrieved from Forbes website:
http://www.forbes.com/sites/adamhartung/2012/11/05/top-20-rd-spenders-not-good-investments/
• FP Staff. (2013, June 25). First Post. Retrieved from First Post Website:
http://www.firstpost.com/business/why-has-jj-lost-its-mulund-cosmetic-license-all-you-need-to-
know-902747.html
• Hoovers A D&B Company. (2010). Retrieved from Hoover A D&B Company Website:
http://www.hoovers.com/company-
information/cs/competition.Johnson__Johnson.74b634d0cb4011bf.html
Bibliography
THANK YOU!
Your Logo

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Johnson & johnson Business Strategy

  • 1. Group members: Priyanka Gujral (CEO),(VP Legal) Amrik Singh (VP Communications) Dhruv Patel () Manpreet kaur (VP Marketing) Sukhjinder Purewal (VP Strategy) Ramraj Rajakumar ( )
  • 2.
  • 3.  Launched in 1886 by Robert Wood Johnson  World’s sixth largest premier consumer health company  Eighth largest pharmaceutical company and fifth largest biologics company  Have more than 275 operating companies around the globe in more than 60 countries employing around 128,000 people.  Johnson & Johnson’s worldwide head office is located at Brunswick, New Jersey in United States.  Embrace research and science and invent innovative products and ideas to advance the well- being of people.  Company strongly focus upon its slogan of : “CARING FOR THE WORLD, ONE PERSON AT A TIME”. https://www.youtube.com/watch?v=w729z7RDFa8 Introduction
  • 4. Commitment of giving better living
  • 5.  Baby care  Oral Health Care  Wound Care  Nicotine Replacement Theory  Skin and Hair Care  Women’s Health  Nutritionals  Non-Prescription Drugs  Eye Care Brands and Products
  • 6. PURPOSE: Bringing Science to the art of healthy living. VISION: Trusted to enrich the health & wellness of every person every day. Healthy Living. MISSION: We will be the fastest growing consumer healthcare company. CREDO: Responsibility towards Consumers, Employees, Environment & Stockholders
  • 8. Your Logo • No Substitute Best Eduaction System in USA -Hiring best professionals Great role in establishing the goodwill of the company • Infrastructure & Capital Marketing Advertisements -Innovations Deep knowledge with experience Home Country Factors helped J&J in Host Country
  • 9. Similar Products & Services in both Countries • It serves same target audience in both countries. • Suitable for middle income consumer . • Selling same product in India. • Same needs of consumers. • suitable for middle income consumer Consumers • J&J deals with consumer product and medical devices and diagnostics and it is selling the same products in USA and India. • Health Care products for Kids. • It is selling the similar products in both US and India because customer needs are same. Type of Products 21
  • 10. STRENGHTHS • Johnson & Johnson is one of the World’s Most Admired Companies • The United Nations awarded J&J the 2011 Humanitarian of the Year Award for our leading role in its Healthy Mother, Healthy Child initiative. • One of the “Top 100 Companies for Working Mothers” every year since the list was initiated 26 years ago. • Excellent distribution network as the brand is supplied to remote villages and faraway places WEAKNESSES • Maintaining a global brand can be problematic as retailers can cause sale of expired products • Being a global brand means operations are disturbed by market fluctuations OPPORTUNITIES • Acquisitions of other smaller companies and increasing broad brand presence. • Bringing out a range of more portable products for economy class and increasing rural penetration THREATS • Excessive promotion of any product making it almost generic. • Spurious brands with the name similar to existing brand name • Availability of cheap substitutes and low priced competitors SWOT ANALYSIS
  • 11. • Janssen a division of J&J dedicated to research and development. • Spends good money on R&D. • Tax issues • Fluctuation in interest, currency and inflation rates. • • High rate of Poverty • Less awareness about healthcare in rural areas • Case regarding unapproved psychiatric medications • case for promoting unapproved psychiatric medications • Slow down in govt. decisions due to political instability. • Adverse changes on foreign investment • .Corruption and bureaucratic inefficiency Political Social TechnologicalEconomic PEST ANALYSIS
  • 13. Porter’s Five Forces Threat of new entrants is Low ,due to entry barriers such as investment cap and tuff regulations. The substitute's threat is High, Example of Risperdal, latent expired in 2007 and became available in generic form. Buyer’s bargaining power is Low cost than the original version of the drug gives consumers more capacity than company. Industry Competition is Low, because of diversification and lack of giant companies Bargaining power of suppliers , diverse and wide range of lots of drugs and pharmaceutical products supplier
  • 14. Johnson & Johnson Strategy USA & INDIA • Most of the US based companies are moving their business towards India. • Globalization is also a key factor. • The sales are high in India • They also have very high comparative advantage • Proper supply chain management. • Cheap labour and abundance of raw materials Johnson and Johnson Cost Differentiation Broad Narrow
  • 15. Recommendations In order to grow and expand in India it has to take a strict care towards its safety measures otherwise it can completely lose its image.1 J&J should boast several strong nutritional brands with the emerging markets in India demanding nutritional products as new middle classes emerge, would increase its presence in one of the most attractive markets of the world at present. 2 3 J&J should open “innovation centres” in world's leading innovation hotspots such as India, with one-stop access to science and technology experts at Johnson & Johnson who can facilitate collaborations across its pharmaceutical, medical device and diagnostics and consumer companies”.
  • 16. Recommendations In India, J&J should open consumer care centres in which they should appoint health care consultants to explain about J&J products or to solve any query or give any information.4 J&J in India, should focus on expansion of its medical and diagnostics field. 5 The company should focus to enhance their future growth and consolidate their overall management by launching the advanced products and services in India in the near term.6
  • 17. Q1. Will J&J be able to get its brand image and faith back in India after the recent incident of license cancellation from opening up new plant in Mumbai due to access amount of presence of “ethylene oxide” harmful chemical in baby’s talcum powder? Q2. What should J&J do to gain more market share and increase its sales in India and in which sector from its own fields of products and brands it should emphasize more to get higher profit? Questions For You
  • 18. • avakadu.eu. (2012, January). Retrieved from avakadu.eu website: http://avakado.eu/dev/node/2585 • blogjnj. (2007, December 27). Retrieved from blogjnj website: http://www.blogjnj.com/2007/12/ • Business - standards. (2013, November 26). Retrieved from Business - standards website: http://www.business-standard.com/search?type=news&q=J+Chandurkar • Carroll, D. (2013, March 23). The Motley Fool. Retrieved from The Motley Fool Website: http://www.fool.com/investing/general/2013/03/23/can-johnson-johnson-turn-around-this-lagging- busin.aspx • en.wikipedia.org. (2013, November 18). Retrieved from en.wikipedia.org website: http://en.wikipedia.org/wiki/Johnson_&_Johnson? • Forbes. (2012, 05 11). Retrieved from Forbes website: http://www.forbes.com/sites/adamhartung/2012/11/05/top-20-rd-spenders-not-good-investments/ • FP Staff. (2013, June 25). First Post. Retrieved from First Post Website: http://www.firstpost.com/business/why-has-jj-lost-its-mulund-cosmetic-license-all-you-need-to- know-902747.html • Hoovers A D&B Company. (2010). Retrieved from Hoover A D&B Company Website: http://www.hoovers.com/company- information/cs/competition.Johnson__Johnson.74b634d0cb4011bf.html Bibliography