Jhonson and Johnson Strategic Analysis Process

11325 WordsApr 18, 201146 Pages
I. What Business Are We In? II. Where Are We Now? External Assessment Trend Analysis Economic Factors U.S GDP One of the main economic factors that would affect JNJ is GDP. As shown above GDP in the United States is decreasing meaning resources will be limited and there will be a much needed increase in cash flows for competitive advantage. GDP’s in others countries are increasing giving JNJ more opportunities to expand to more markets around the world to increase their market share and distribution. Currency | US Dollar Per Currency December 31st, 2008 | US Dollar Per Currency December 31st, 2009 | Trend | EUR | 1.392 | 1.4405 | 0.0485 | GBP | 1.462 | 1.6221 | 0.1601 | JPY | 0.011 | 0.0108 | -0.0002 | CAD | 0.817…show more content…
Keeping up with the newest technology would make research and development much more productive and efficient and would give JNJ better opportunities to come up with newer, healthier, and more useful products. Not only would it help research and development, but technology innovations can help with operations and even with control factors over the company. There are many different forces that JNJ needs to be aware of. They need to be able to take full advantage of the opportunities and prepare for the threats to maximize competitive advantage knowing the different trends. Potential development of substitute products Competitive Analysis Porter’s Five Force Model Rivalry among competing firms Bargaining power of suppliers Bargaining power of consumers Potential entry of new competitors Potential development of substitute products The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. Since pharmaceutical and medical devices are necessary for the maintenance of good health, a significant decrease in use is not likely. The largest threat of substitutes comes from generic pharmaceuticals. Once a drug loses patent protection, associated revenue usually rapidly falls. One way to mitigate the effect of generic drugs would be to develop more compounds with lower sales, perhaps by targeting more precise conditions. A similar threat of substitutes is

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