Strategic Analysis of Johnson and Johnson

This report provides a strategic analysis of Johnson and Johnson, including an overview of the company, sales growth, and brand reputation. It includes a PESTEL analysis, SWOT analysis, and strategic options for the company. The report highlights the importance of market analysis and stakeholder engagement in maintaining brand value.

International strategy
management

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the company............................................................................................................3
Strategic analysis of the company...............................................................................................3
Strategic options of Johnson and Johnson...................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The following report is based on Johnson and Johnson. The sales growth of this company is 3.3
% and total assets which it is having is 155 dollars. This company is is facing 15,000 lawsuits
which includes producing of talc based product which is causing cancer among customers
(Büyüközkan, and Ilıcak, 2019). Following report includes overview of the company, pestel
analysis, SWOT analysis and stakeholders analysis which will help in in developing effective
strategies which are helpful for the company to maintain brand reputation.
Overview of the company
Johnson and Johnson is an American organisation which is founded in the year 1886. This
company develops medical devices, pharmaceutical and consumer packaged goods. This
company is one of the largest valuable organisational. This company is headquartered in New
Brunswick, New Jersey. This has approximately $70.1 million sales in the year 2015. The
product line of this organisation includes Band-Aid Brand line of bandages, Johnson's
Baby products, Tylenol medications, Clean & Clear facial wash, Neutrogena skin and beauty
products and Acuvue contact lenses.
Strategic analysis of the company
PESTLE of Johnson and Johnson
Johnson and Johnson is a big multinational company which is providing services in almost all
countries of the world. It is essential for this company to have an analysis of market before

launching any new product or service within market. Pestel analysis of this company is
described below –
Political factors - these are an essential factor which have to be analysed by companies for
conducting the business activities within market for long term. Johnson and Johnson is operating
in in drug manufacturing in various countries. it is essential for Johnson and Johnsons drug
company to analyse all the political factors before entering into any new market. It is very
essential for this company to analyse the risk of military invasion, legal framework for contract
enforcement and intellectual property protection (Cateora, and et.al, 2020). This is helpful for
this drug manufacturing company to do the business in proper manners without any political
hindrance.
 Economical factors - these are defined as macro environmental and micro environmental
factors which affects the success of business. Johnson and Johnson company has to
analyse the impact of competitive advantage of the company by evaluating the economic
factors of market. There are several factors which can be we analysed by this company
before entering into new market. These include inflation, growth rate and economic
indicators of the industry. This drug manufacturing company must analyse the type of
economic system in which the company is operating.
 Social factors - Johnson and Johnson company analyse the the culture and the the society
values and believes before launching any product in market. consumer attitude towards
the product is an essential factor which is considered by this company before selling it in
market. The different social factors that will impact leadership of this company includes
analysing the demographics and skill level of St population effectively. It is analysed that
culture and attitude of the potential customers is evaluated in essential manner. This helps
the company to to increase customer satisfaction level and profit within market.
 Technological factors - technology is termed as latest technique or tool for any marketing
strategy that can be used by companies to increase their market share. Johnson and
Johnson is dealing in drug manufacturing and there are various latest techniques used in
the transportation of this company, manufacturing of the products and marketing of
Johnson and Johnson products. Technological analysis done by this company to evaluate
its competitive advantage in market. this also provides information about the impact of

value chain structure within healthcare sector which is beneficial for the company to
increase its market share.
Environmental factors - there are certain environmental standards and norms defined by by
government in order to operate all the companies as well as industries in proper manners without
harming the environment. there are various liability laws as well as environmental laws which
are considered by Johnson and Johnson while evaluating various business operations.main
concern with this company is waste management within healthcare sector (Medrano, Cornejo-
Cañamares, and Olarte-Pascual, 2020). As this company is a drug manufacturing company, it is
essential to know what are the different ways for maintaining waste management.
 Legal factors - these are concerned with legal regulations and rules which are adopted by
different industries in order to protect their intellectual property rights. any company has
to evaluate the legal factors before entering into market as this can lead to theft of secret
of the organisation. In case of Johnson and Johnson company, there are approximately
15,000 lawsuits against this company. Some of the cases are alleging the talc based
product which cause cancer or mesothelioma. This company is also facing claims for
selling a drug Risperdal which causes male breast growth.
SWOT of Johnson and Johnson
SWOT analysis of Johnson and Johnson help the company to analyse its strength as well as
opportunities within market for overcoming weakness and threats of the company. this is a
management framework which is helpful for the organisation to benchmark the business and
performance in competitive industry.
 Strength – this company is one of the most admired companies across if world.this
company is providing products in healthcare sector which are especially for infants. This
is is a major strength of this company as there is low competition. This company is
among the top 100 companies for working mothers. The brand reputation and image of
this company e is very good within market. This has approximately 250 subsidiary
companies which are operating in different countries across the world.
 Weaknesses - there is strong competition as the companies dealing in small segment of
market. This is a global brand and hence operations are distributed because of the market

fluctuations. Another weakness of this company is that it has claimed for selling harmful
products which are causing skin cancer.
 Opportunities - this company e is operating since several years and has a good brand
value.there are opportunities with this company to acquire different smaller companies
which will help in increasing market share. As there is demand of various portable
products for economy class, on the other hand developing products for rural segment it
will also help this company to increase the number of customer base.
 Threat - as there is increased competition, the market share of Johnson and Johnson is
decreasing. There are approximately 15,000 lawsuits against company products. Is a
major threat for the organisation to achieve loyalty and trust from customers and maintain
market share.
Strategic options of Johnson and Johnson
Johnson and Johnson is healthcare based company and this is claimed 15,000 lawsuits because
the products of this company are involved in producing skin cancer and other medical problems.
It is very important for the company to provide special concern on the engagement of
stakeholders in order to retain brand reputation and image. This company has to develop and
effective as well as strong strategy and plan for retaining brand value within market (Pan, Chen,
and Zhan, 2019). The different stakeholders to Johnson and Johnson includes social,
environment, internal and external matters and governance. The corporate culture of this
company is related to its credo which is known as importance to protect and save stakeholders.
This company takes special care of malfunctioning or sabstandard products. This company
focuses on its uniqueness of product which will increase the demand of its product among
customers. The creed of this company describes the decision making policy which will be
helpful in managing business operations at the time of diminished brand value due to lawsuit.
Decreed of Johnson and Johnson is to put the needs and well-being of people a priority and serve
them in in effective manner. This company is also involved in social responsibility activities that
are associated with health sector. This company considers itself to be acclaimed for the
community and market in which it is providing services and products. For benefiting the society,
this company is providing charity and excess of fair payment. This company protects
environmental resources. The investors of Johnson and Johnson are also concerned properly as

there also an important stakeholder of company. This company is involved in making reserves
for the adverse time. This is helpful in managing the shareholders if there is any problem within
company profits.
CONCLUSION
From the above discussion, it is analysed that Johnson and Johnson has to take several
initiatives for managing the brand reputation among customers. It has to launch new quality
products which will help in regaining the trust of customers. Before launching any product,
market analysis must be evaluated so that there is no loss to the profit.

REFERENCES
Books and Journals
Büyüközkan, G. and Ilıcak, Ö., 2019. Integrated SWOT analysis with multiple preference
relations. Kybernetes.
Cateora, P.R., and et.al, 2020. International marketing. McGraw-Hill Education.
Medrano, N., Cornejo-Cañamares, M. and Olarte-Pascual, C., 2020. The impact of marketing
innovation on companies’ environmental orientation. Journal of Business & Industrial
Marketing.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), p.05018013.