Johnson and Johnson Strategy Formulation

2164 Words Nov 28th, 2010 9 Pages
1. INTRODUCTION

This project is one of three assigned reports I will complete as part of the strategic analysis of Johnson and Johnson. This firs report focuses on the strengths, weaknesses, opportunities, and threats (SWOT) and includes the following sections. First, the major concepts related to the SWOT analysis will be defined. Second, those concepts will be applied to the specific case of Johnson and Johnson. Then the evidence from Johnson and Johnson will be evaluated to identify the major problem the company is facing and propose a solution that Johnson and Johnson can adopt to restore its lost competitive advantage.

2. CONCEPTS

The SWOT analysis is the examination of a company’s external environment and internal
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Firms use tactics like price competition, advertising battles, product introductions, and increased customer service or warranties. Rivalry occurs when competitors sense the pressure to act on an opportunity to improve their position. The General forces that present opportunities for Johnson and Johnson are the global environment, and the technological environment. These two general environment forces present numerous opportunities for Johnson and Johnson within the pharmaceutical industry. There is an increasing trend for firms to expand their operations and market reach beyond the borders of their home country. Globalization provides both opportunities to access larger potential markets and a broad base of production factors such as raw materials, labor, skilled managers, and technical professionals. With over 200 subsidiary companies that are managed in a decentralized manner, Johnson and Johnson views their conglomerate not as a corporate headquarters that controls. It views them as a chain of small business that are responsible for their own actions and production. Johnson and Johnson is expanding into the new emerging markets of China and India. The technological environment leads to new products and services and improve how they are produced and delivered to the end user. Innovations can create entirely new industries and alter the boundaries of existing industries.

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