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SWOT Case Study
SWOT Case Study
Johnson & Johnson formed in1886 and it released its product of note in 1896
The firm branched out in 1919, and was listed on the New York Stock Exchange in
1944
Over the years Johnson & Johnson has grown substantially due to strategic
acquisitions such as Neutrogena in 1994 and DePuy in 1998. From 1989 to 1999,
the company made 45 such acquisitions of companies and product lines
Today the firm can boast of revenues exceeding $61,897 million during the financial
year ending in December 2009
Johnson & Johnson products fall into three main categories: Pharmaceuticals,
Medical Devices & Diagnostics, and Consumer Health care
Dependence upon the Success of Launch Products Many new launch products are
vulnerable to the uncertainty of regulatory review
Reliance on Small Molecule Drugs Small molecules are more impacted by generic
competition. Johnson & Johnsons small molecule drug sales declined in 2008 and are
forecast to fall further into 2012. The necessity of finding replacements for billion dollar
products as they mature represents an daunting task
Potential to Exploit Biologics Market The addition of further biologics (e.g. therapeutic
proteins, antibodies) to its portfolio can serve as a buffer as small molecule patents expire
Dependence on the Success of Launch Products Many new launch products are
vulnerable to the uncertainty of regulatory review, therefore, a reliance upon launch
products potentially represents a threat to Johnson & Johnsons outlook.
Negative Impact of Recent Product Recalls Johnson and Johnson has had the
misfortune of having to recall of more than 40 medicines recently. The company stands to
take a hit to its reputation, competence and integrity.
After analysing their SWOT, Johnson & Johnson now have to come up with an action
plan to address/solve the problem they have been addressing