Business Strategies of J&J and Nike: CAGE Framework and Models

This report provides a comprehensive analysis of the business strategies employed by Johnson & Johnson (J&J) and Nike. It delves into their respective business models, examining how they have achieved and sustained success in their industries. The report highlights the core strategies of J&J, focusing on customer satisfaction, healthcare products, and sustainable practices. It also explores Nike's emphasis on innovation, athletic products, and sustainable development. Furthermore, the report applies the CAGE framework (cultural, administrative, geographical, and economic) to assess how these factors influence both companies' operations and market strategies. The analysis covers key aspects such as competitive advantage, value proposition, and resource utilization, offering a detailed understanding of how these companies have adapted to the modern business landscape.

Running head: BUSINESS STRATEGY
Business strategy
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................6
What is a strategy.............................................................................................................................8
Business model................................................................................................................................9
CAGE framework..........................................................................................................................10
Conclusion.....................................................................................................................................11
Reference list.................................................................................................................................12

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Executive summary
This project is mainly about the construction of a strategic business model, and the way the
strategies must be formulated a d implemented. Apart from this it also talks about the way the
CAGE framework works for different companies and this project is also aimed towards the
components of a correct business model and the ways in which a company must prosper in
porddr to restrain its customers from switching over to other alternatives.

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Introduction
The most important thing that any business requires for its success is a proper strategy.
The word strategy comes from the Greek word strategies which means strength. Right from the
time of the ancient Greeks and Romans, it is a known fact to people that in order to win over the
battles with the enemies, one need to find out ones hidden strengths and implement them in the
exact manner (Casadesus‐Masanell and Zhu 2013). This paper deals with the companies J&J
and Nike’s business strategies that have helped them to attain success in their path.
Johnson and Johnson
The very name Johnson and Johnsons needs no special mention as it is a widely popular
company. Over centuries it has been thriving towards satisfying its goal of customer satisfaction
and caring for the environment around it. The very mission statement f this company defines its
purpose, it says “caring for the world, one person at a time”. It is the leading procedure of the
well being products and products of health and safety. People have vested their trust in this
company for years. The main reason behind my choosing of this company is the immense service
that it has been providing to the customers over years, Johnson & Johnson is the name that is
always present at the tip of the tongue of every one of us when it comes to baby health care
products and it is only because of the pioneering work that it has done (Bocken et al 2014). Their
main focus is

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 Improving the lives of women and children
 Boosting the health care workforce
 Prevention from diseases.
organization2
Nike
Nike is the name that crops up anytime and every time we think about athletic products.
This company has worked immensely hard in bringing a huge plethora of innovation and
modifications and up gradation to inspire every athlete in the world. They believe that they will
be creating innovative products today to solve the problems of tomorrow’s generation. The
reason why I have selected this organization is mainly because of its top priority directed over
sustainability, which has become a game changer for them (Zott and Amit 2013).
In the modern day scenario when the huge corporate giants are mainly concerned about
money making, Nike is one among the several companies that has not gone astray only after their
own profit maximization but has given sufficient importance to pollution reduction thus
encouraging sustainable development (Hernes and Metzger 2017).

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What is a strategy
Business is termed as the modern day war and in order to win over this war;
companies need to frame out a strategy that would enable them to grow and develop in the long
run. It must be a set of tactics that would enable to attain victory over the other competitive firms
in the long run. A strategy is something that will help answer four different questions like
 Where do we compete?
 What unique value do we bring?
 What resources do we utilize?
 How do we sustain unique value?
The moment a business strategy is helpful in answering all these questions, the company
will know that it has been successful in implementation a correct and innovative strategy.
In context of Johnson & Johnson
This company knows very well its area of working that is its area of expertise is health care and
current records suggest that it is competing in full one third of the universal health care
marketplace (Näyhä and Pesonen 2014). This indeed is a very significant and sensitive area in
the modern day context (Carcary, Doherty and Conway 2014) . In the present day scenario,
health and wellbeing has become of the major issue and people all around the world are victims
of the increasing amount of pollution and diseases and are always demanding for product s that
would enable them to keep healthy and have a disease free life and this demand has been

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beautifully fulfilled by this company. Speaking about the value that this company has added is
immense. It always tries its level best to stay true to its mission of “caring for the world, one
person at a time” which means that they care for each and every customer (Marcantoni 2014).
They try to bring several innovative ideas in order to satisfy the needs of their customers and
promote people’s health and well being which is their major concern. It is for the superior quality
of their products that the customers restrain from switching over to other alternatives. They also
maintain strong networks with the best R&D centers to develop prpoducts keeping in mind the
health of the patients.
In context of Nike
Nike has also been successful in maintain a proper nusiness strategy-Firstly; it always
puts the customer benefits first. Nike always develops products that suit the personal benefits of
their customers (Markides 2013). Secondly, it has based its business on a felt need, it is because
of the expanding white collar workforce that has created an immense need for the Nike products,
a good example can be the Nike jogging shoes. Thirdly, it knows how to satisfy the customers
and cater to their modern and changing needs, Nike always uses up all the newest technologies
for their production and promotion.
Business model
A good business model is one that mainly deals with
 who is the targeted customer
 what do we offer to the customers
 how to create value proposition
 how do we generate revenue

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Both Johnson & Johnson and Nike have been able to build and maintain a good business model.
It is about learning from others and reinventing oneself with the new innovative ideas. As far is
J&J is concerned, it has targeted the health and well being aspect of all the individuals
particularly the babies and the patients and they know that their products will best suit to the
demands of their customers. Similarly, Nike has targeted the athletes and the sports people and
their products will best suit to the demands of the customers, they also promote the usage of
sustainable products by reducing the carbon emissions while considerable increasing their
revenue. They also make sure that they have good corporate partners to invest in them as without
proper sponsorship, no business model can prosper.
CAGE framework
 c-cultural
 a-administrative
 g-geographical
 e-economic
Both J&J and Nike have been influenced a lot by the cultural concepts, they have always
kept the customers at the top of their priority list. These companies have branches at different
places all across the globe so that customers located in different parts of the world can have
access to it. These companies make sure that the way they administer their business, the
customers stay totally satisfied with their products rather than switching over to any other
alternatives available in the market. Talking about the economic aspect, both these companies

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make sure that their business satisfies both, customer needs and profit maximization. They also
believe in adopting cost intensive business plans.
Conclusion
Thus, it can be concluded from this paper that a company needs to find out all its strength
ij order to win and achieve its goals and objectives. In order to do this, each and every company
must have a well constructed business plan which is also to be properly implemented in the
company. It must be the sole objective of every company to place the customer satisfaction as
their top most priority.

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Reference list
Bocken, N.M.P., Short, S.W., Rana, P. and Evans, S., 2014. A literature and practice review to
develop sustainable business model archetypes. Journal of cleaner production, 65, pp.42-56.
Casadesus‐Masanell, R. and Zhu, F., 2013. Business model innovation and competitive
imitation: The case of sponsor‐based business models. Strategic management journal, 34(4),
pp.464-482.
Markides, C.C., 2013. Business model innovation: What can the ambidexterity literature teach
us?. The Academy of Management Perspectives, 27(4), pp.313-323.
Zott, C. and Amit, R., 2013. The business model: A theoretically anchored robust construct for
strategic analysis. Strategic Organization, 11(4), pp.403-411.
Näyhä, A. and Pesonen, H.L., 2014. Strategic change in the forest industry towards the
biorefining business. Technological Forecasting and Social Change, 81, pp.259-271.
Hernes, M.I. and Metzger, M.J., 2017. Understanding local community's values, worldviews and
perceptions in the Galloway and Southern Ayrshire Biosphere Reserve, Scotland. Journal of
environmental management, 186, pp.12-23.
Carcary, M., Doherty, E. and Conway, G., 2014. The adoption of cloud computing by Irish
SMEs–An exploratory study. Electronic Journal Information Systems Evaluation Volume, 17(1),
pp.3-14.

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Marcantonio, G., 2014. Development of framework for the manufacture of customized titanium
cervical cage implants using additive manufacturing(Doctoral dissertation, Stellenbosch:
Stellenbosch University).