Quick Stats on Johnson and Johnson

Founder	James Johnson, Edward Johnson and Robert Johnson I
Year Founded	1886
Origin	The United States of America
No. of Employees	1,34,500
Company Type	Public
Market Cap	$ 209.42 Billion
Annual Revenue	$ 82.06 Billion
Net Income/ Profit	$ 14.30 Billion

 

(J&J Range of Products, Source: Adage)

Products by Johnson and Johnson

Johnson and Johnson is a lifestyle and health-wellness brand. J&J covers these product categories:

• Consumer health products 
• Medical devices 
• Pharmaceutical products 

Competitors of Johnson and Johnson

The top 5 competitors of Johnson and Johnson are:

• Pfizer
• Novartis 
• GlaxoSmithKline  
• Bayer
• Merck 

SWOT Analysis of Johnson and Johnson

SWOT stands for strength, weaknesses, opportunities and threats which is an analytical technique used for assessing your business in the four aspects. SWOT analysis is simple to analyse and determine what is best for the company at present as well as to formulate a successful strategy for the future. Accordingly, the SWOT analysis of Johnson and Johnson is carried out.

Let’s first start by analyzing the strength of Johnson and Johnson from the SWOT analysis of Johnson and Johnson.

Strengths of Johnson and Johnson

• Research & Development: As per Johnson & Johnson statement of earnings for the third quarter of 2020, the company spent 20.13% of its profit on research and development. Since R&D is a crucial component of drug development in the healthcare and pharma industries, a high R&D budget is the biggest strength of Johnson & Johnson.
• Revenue Progression: Over the year Johnson & Johnson has earned a profit of $80 billion. During the same period, Pfizer, the rival of Johnson & Johnson, has earned $50billion. With a clear lead over its competitor, Johnson & Johnson’s revenue stream places the company in a dominant position in the industry.
• Products: Johnson & Johnson make consumer health products, medical devices and pharmaceutical products. It owns brands like Listerine, Band-aid, Tylenol and Pepcid. The large array of well-known products of Johnson & Johnson is its core strength.
• Strong Global Reach: Johnson & Johnson is present in 60+ countries and its products are sold in over 150+ countries. Since the company is spread over the globe, its products reach millions of people. 
• Stable Market Performance: Johnson & Johnson has recorded that for the last 58 years it has had a considerable profit. Around 70% of its share came from the #1 or #2 global market share and 25% of the sales from the products of Johnson & Johnson.

(J&J’s Media Lead – Maria Ravina on DMT at J&J, Source: Think With Google)

You Must Watch This: What Maria Ravina – Media Lead in J&J says on “How Johnson & Johnson’s digital overhaul helped them respond to changing customer needs”. Do go, watch and come back for the overview & our bonus tip.

Overview: As you must have heard in the video, J&J got 17% ROI on baby’s social media campaigns and 63% on Listerine. It also maintained an online reputation with consumer interaction. Also, the 245% increase in e-commerce is only achievable when all the consumer communication and plans are pivoted towards e-commerce.

Bonus Tip: So, as you now must have understood, how turning the business towards digital marketing transformation becomes the strength for one business. The same goes while learning these digital marketing skills. If you are smart in taking the advantage of the privilege in your life then we can assure you that you will be benefited in terms of future endeavours and career growth.   

Weaknesses of Johnson and Johnson

• Uneven Revenue Distribution: Approximately 50% of Johnson & Johnson revenue comes from the pharma sector. And around 32% from the immunology sector. Much of the company’s revenue depends on a few products and these products are vulnerable to expiry. This is one of the weaknesses of Johnson & Johnson. 
• Fall in Consumer Health Sales: Among the core, pharmaceutical and medical sectors- consumer healthcare pulls the least amount of revenue. Boosting sales in this area would ensure a profit and distribute the portfolio greatly.
• Kickback Allegations: A Kickback is a form of bribery. Pharma companies often provide a kickback to doctors to increase prescriptions of their products. A whistle-blower accused Johnson & Johnson of kick-backing Remicade and Simponi. This is one of the unfair impacts on Johnson & Johnson.

Opportunities for Johnson and Johnson

(J&J Dummy Image of Covid-19 Vaccine, Source: CNBC)

• One-Dose Vaccine: Companies like Pfizer and Moderna are already out with vaccines in the market however their vaccines are of two doses. Johnson & Johnson vaccine requires only a single dose. This indeed is profitable for Johnson & Johnson and a lucrative opportunity for Johnson & Johnson. 
• Bio Implants: Bio implants are artificial body parts made from biosynthetic materialized collagen and artificially engineered tissue and skin. It is estimated by 2030 the demand for impact will increase. This is a great opportunity for Johnson & Johnson to expand in this field.
• Mergers and Acquisitions: Mergers and acquisitions allow companies to broaden their portfolio without investing in developing the capabilities in houses. Johnson & Johnson recently acquired Momenta for $65 billion. This strengthened Johnson & Johnson position in autoimmune disease drug manufacturing and development. 
• Telehealth: This sector covers the distribution of health services over the electronic media. Seeing potential in this sector Johnson & Johnson has invested in a Telehealth startup named Thirty Madison.

Threats to Johnson and Johnson

• Lawsuits: Recently Johnson & Johnson paid a $100 million settlement to over 1000 cases related to Johnson & Johnson talcum powder. Accusers claimed the powder to develop ovarian cancer. Such a Lawsuit impacts the company’s reputation and is a major threat for Johnson & Johnson. 
• Gender Discrimination Allegations: Johnson & Johnson opening lines in diversity and inclusion policy affirms a commitment to gender equality. However, there are some recent news of a former senior executive suing Johnson & Johnson for gender discrimination and harassment is going to question its commitments. If these allegations are proven true then it would be a threat to the company.
• Competition: The biggest competition for Johnson & Johnson is Pfizer which is recently out with its high efficacy vaccine for covid 19. Johnson & Johnson has also launched its single-dose vaccine but the demand for the Pfizer vaccine is high.
• Surgery Deferrals: Supplying medical devices is one of the biggest businesses of Johnson & Johnson. However, this is the only sector which has shown a decrease in sales especially due to Covid 19. There has been a gradual deferral in surgeries because of Covid 19.
• Corporate Espionage: Johnson & Johnson invests heavily in research and development. Naturally, its intellect is vulnerable to cooperate espionage. For example, recently some hackers tried to steal information on Johnson & Johnson research on Covid 19.

This ends our demanding SWOT analysis of Johnson and Johnson. Let us conclude our learning below.