Johnson & johnson Business Strategy

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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 ( )

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Transcript of Johnson & johnson Business Strategy

Page 1: Johnson & johnson Business Strategy

Group members:

Priyanka Gujral (CEO),(VP Legal)

Amrik Singh (VP Communications)

Dhruv Patel ()

Manpreet kaur (VP Marketing)

Sukhjinder Purewal (VP Strategy)

Ramraj Rajakumar ( )

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Page 3: Johnson & johnson Business Strategy

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

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Commitment of giving better living

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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

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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

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Porter’s Diamond Model

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• No SubstituteBest Eduaction System in USA

-Hiring best professionalsGreat role in establishing the goodwill of the

company

• Infrastructure & CapitalMarketing Advertisements

-InnovationsDeep knowledge with experience

Home Country Factors helped J&J in Host Country

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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

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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

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• 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

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Five Forces Model

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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

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Johnson & Johnson StrategyUSA & 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

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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.

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3J&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”.

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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

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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

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• 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

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THANK YOU!

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