Case Study - Johnson and Johnson

Johnson and Johnson Staying on Top

This case mostly describes about J&J s way of marketing its product and corporate strategies not only to sustain in the ever changing market but also to remain the market leader in its operating segments.

J&J is staying on top of the market as the leader by different approaches and they are changing the organizational dynamics rapidly synchronised with the changing nature of the market. The most prominent points for their success are :-

1. Business Diversification
The business divisions of the organization is divided into 3 main segments i) ii) Consumer Products Pharmaceutical

iii)

Medical Devices Diagnostics

and

They have mostly diversified their business and ventured into different segments by observing the marketing by means of the following a) Understanding potential emerging markets and developing competencies for it. (By ensuring the R&D departments and Scientists are treated as the most privileged resources) b) Venturing into various R&D projects (Internally and also including other research firms)

Sayantan Roy

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Case Study - Johnson and Johnson

2. Understanding the basic and important demand of their operation segment

The segment is sensitive to quality and precision as human lives are concerned. So price can be compromised to be higher but quality and reliability can never be compromised. So to keep up the competency level higher and also to ensure its development the acumen of the organization was developed accordingly where science and scientists worked very hard to make their product best in the market.

3. Diversification through controlled decentralization

The strength of the organization lies in its complex decentralised organization structure where each business unit works with autonomy. But as the market scenario changed and overhead cost was taken into consideration there was a need for centralized control architecture. These changes were adopted accordingly the need of the hour by the CEO.

4. Marketing Strategies
a) Developing all sorts of complementary products and keeping a complete product line. (All solution(s) for the problem(s)) b) Keeping the sales team ever ready, energized, highly motivated and training them to be opportunity hunters. This will ensure their next to impossible sales target to be met. (Set by the CEO) c) Acquisitions i) Acquire important R&D firms.

ii) Innovations/Patents. iii) Any other firm/organization which have potential for future growth of J&J. d) The Weldon Way of marketing

Since his birth he has seen hard work and struggle. And he always puts his effort to set the bar higher than before. So he always sets the selling target for his employees very high. He also has a strong ability of internal marketing and keeping the important employees with him.

Sayantan Roy

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Case Study - Johnson and Johnson

For him being opportunity hunter is more important than anything else. Once he cancelled his journey back to home to grab a deal with a potential client. His efforts were sometimes criticized 1. Setting the sales target too high. 2. Trying to centralize the organization. 3. Hostile takeovers e) Re engineering products (R&D) to stay on top according to its PLC stage.

In a nutshell
J&Js strategies for being the sustainable market leader are, 1) Develop, Innovate and Manufacture highest quality product in large scale meeting all the demands towards any possible solution. 2) Increase revenue generation by aggressive selling efforts and ensuring all round partnership with their customers. 3) Retaining key people and keeping the working environment of the organization under control. 4) Acquiring the potential firms which will ensure innovations and skill and competency development of J&J. 5) Keeping functional integrity through controlled de centralized organizational dynamics.

Sayantan Roy

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