Growth Strategies Innovation Essay examples

2951 WordsNov 24, 201412 Pages
Growth Strategies, Innovation, Alliances, and Execution Oscar Gonzales Growth Strategies, Innovation, Alliances, and Execution u10a1, DB8004-01, Spring 2012 Introduction Founded in 1885 in New Brunswick, New Jersey by brothers James and Edward Mead Johnson, Johnson and Johnson began as an antiseptic surgical dressing’s manufacturer. Today, Johnson & Johnson has approximately 117,900 employees throughout the globe, is comprised of three strategic business segments (SBU’s), and has a presence in almost every country in the world (Johnson and Johnson, 2012). Johnson and Johnson spends nearly $5 billion on pharmaceutical research and development annually. Johnson and Johnson has a long history of acquisition and diversification…show more content…
The company's push to develop new pharmaceuticals is driven by the drug industry's biggest challenge: patent expiration. As its top selling products lose their patent protection, Johnson and Johnson must replace them with new promising compounds. Fighting generic competition will continue to be a challenge as more of Johnson and Johnson’s products fall off patent. For example, former best selling epilepsy and migraine drug Topamax lost its market exclusivity in 2010, and top sellers Concerta and Levaquin (an anti-infective also known as Floxin) lost their patent protection in 2011 (Hoovers, 2012). Business Strategy Amit and Zott (2012) define a business model as a system of interconnected activities that define the way an organization conducts business with its customers, vendors, partners, and strategic business units (SBUs). Activities are conducted to satisfy the needs of a market, specifying which activities each participant performs, and identifying how these activities are linked. Corporate strategy includes understanding how a corporation manages a set of SBUs. The traditional SBU model helps organizations focus on specific markets while maintaining control and measuring the unit’s success. An SBU, whether it is an independent firm or a division of a large corporation, competes within a particular industry or market (Nemati et al., 2010). The traditional SBU model however, does not necessarily
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