J & J Philippines -Case

There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and

Johnson & Johnson, a 130 years old famous multinational healthcare company through its family of companies is involved in the research and development, manufacture and sale of a wide range of products in the healthcare. Product that related to human health and well-being has always been their main interest over the years and also presently. Johnson & Johnson was incorporated in the State of New Jersey in 1887 by three brothers; Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson.

Eli Lilly had the right strategy finding Ranbaxy when moving into the Indian market. In 1992, India had loosened restrictions on foreign direct investment to 51%. Both companies had good previous experience and were each considered to be strong players in the industry. Eli Lilly benefitted from the relationship immediately by accessing Ranbaxy’s distribution network including access to difficult international markets such as Russia, getting government approvals, licenses, and low cost supplies. Ranbaxy gained the branding of a foreign name, which suggested ‘good quality’.

The external environment consists of opportunities and threats. J&J can greatly benefit from taking advantage of opportunities. An opportunity that J&J can benefit from is the changes in Medicare insurance that have recently been enacted providing increased medical coverage to seniors with Medicare by covering prescription drugs. An article that I read in the Wall Street Journal stated that the new plan increases prescription drug coverage for senior citizens dramatically. This should increase the amount of prescription drug use in the U.S. Since pharmaceutical sales is J&J's largest segment, increases in prescription drug use can potentially increase sales and profits for

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The Pfizer case provides an introduction to external analysis. The case highlights the pharmaceutical industry, which has enjoyed extraordinary long-run profitability. The case also demonstrates how broad changes in broad environmental factors (i.e. demographics, technology, culture, etc.) have an impact on industry competition. The case is not especially complex, so it is not overwhelming as a first case.

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This case was prepared by Associate Professor Marc L. Lipson. It was written as a basis for class discussion rather

For Johnson and Johnson to continue being an industry leader, change is needed. An overhaul of the company’s

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They started selling quality furniture, bedrooms and other things made of wood but in 1930 because of the Great depression they started to look for other market and products so the company could survive this economic situation that affect all the US. Because of this they started

Primary profit responsibility shifted from P&Gs four regional organisation to seven GBUs that would now manage product development, manufacturing and marketing of their respective categories worldwide

This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,