Wherever you’re from around the world, it’s possible that once in your life, you’ve used or seen a product from Johnson and Johnson. J&J built an empire from scratch by covering all the healthcare industry products.
Today, it has billions of dollars of business serving millions of people with its global presence, steady revenue, and efficient supply chain. That’s just the good part! It has flaws, too, which we will get to know by doing a Johnson and Johnson swot analysis.
Let’s dive in!
Johnson & Johnson: Company Overview
| Company | Johnson & Johnson (J&J) |
| Industry | Pharmaceutical, Medical Technology, Consumer Healthcare |
| Founded | January, 1886 |
| Founder | Robert Wood Johnson I, James Wood Johnson, Edward Mead Johnson |
| CEO | Joaquin Duato |
| Headquarter | New Brunswick, New Jersey, U.S. |
| No. of Employees | 144,500+ |
| Annual Revenue | $93.77 billion (FY 2021) |
| Website | www.jnj.com |
James Wood Johnson, Edward Mead Johnson, and Robert Wood Johnson founded J&J as a family business to serve people with healthcare products. After 130 years, J&J is now one of the leading healthcare industry companies.
With over 120,000 employees in the company, J&J is operating in 175 counties all around the globe. Besides having more than 250 brands and three categories in its portfolio, it has everything you need in the healthcare industry.
Continuously researching and developing new products made it possible to where it stands today.
Product & Services of Johnson & Johnson
Consumer Health | Medtech | Pharmaceuticals
Johnson & Johnson Competitors
Pfizer | Merck | GlaxoSmithKline | Bayer | Abbott | Unilever | Novartis | Reckitt Benckiser
Did You Know?
Johnson & Johnson’s logo has never been changed over in 130 years of history. It’s the original handwriting of the founder Robert Wood Johnson who won an award during the first world war.
Strengths – Johnson and Johnson SWOT Analysis
Extensive Product Line: With more than 100 brands in its portfolio, J&J has an impressive product line. And these products are categorized into three major categories: pharmaceutical, health, and medical. Their pharmaceutical wing alone owns around four hundred products in their product line.
Strong R&D Wing: Every major healthcare companies pour tons of money into R&D to stay ahead of the game and survive in the long term, and so does J&J. The statistics show they spent more than $15.482B in 2022 alone in R&D. It was around an 11% increase, not to mention a huge chunk of the total profit.
International Reach: J&J has an operation wing in 60 countries. Besides, you can find their product in 89% of countries (175 countries) around the globe. With more than 250 subsidiaries, the international presence of J&J is enormous. And with their COVID-19 vaccine, the presence grew even more vital.
Steady Revenue: As the largest healthcare company, J&J has a very impressive steady revenue. In 2022, J&J’s revenue was $96.04 B, a 2.42% growth from the last year. With this revenue, they have a competitive advantage in the industry to grow, expand and pour money into their R&D wing for more innovation.
Efficient SCM: An efficient supply chain could save a company precious money and time. Keeping that in mind, J&J built a robust and highly efficient supply chain that ensures on-time raw material availability. Because of that, J&J survived the pandemic with a very well-organized SCM.
Stable Market Performance: With these multiple global presences, efficient supply chains, and steady revenue, J&J has become one of the most profitable share dividends in the world. J&J has an outstanding reputation when it comes to market share. With increased share price, J&J is growing stronger than ever.
Weaknesses – Johnson and Johnson SWOT Analysis
Allegations: J&J has been overwhelmed with accusations in the past decade. From executives suing the company for gender discrimination to a lawsuit for bribing the doctors. These allegations decreased the overall reputation of the office culture, and workers filed a case against J&J several times. Besides that, kickback allegations are common due to the norm of the industry culture.
Unethical Operations: Two unethical practices came to light in recent years. One is opioids, claiming that three was misleading information regarding the marketing campaign and people overdosed. In 2021, they reached and agreed to settle the case.
Uneven Revenue in Categories: Even with an extensive product line and category, more than half of revenue comes from a signal category, pharmaceutical. In 2022, the pharmaceutical sector had around $45.57B in sales, a 55% of the total revenue. Specifically, most of the income comes from major key products in this category.
Opportunities – Johnson and Johnson SWOT Analysis
More Diversified Products: J&J is focused on healthcare products, and most of the revenue comes from them. But, as the industry changes with technology, many opportunities exist, including expanding consumer health-related products and services. That will not only increase the revenue but also diversify it.
Expand Through A&M: One crucial way to expand and emerge in this world is through acquisition and merger. According to data, there are a total of 43 companies in their acquisition portfolio. And many of those required massive amounts, for example, $65 B for Momenta.
Diversified Target Market: Even with the global presence, J&J’s target market is not diversified enough. Most of their revenue comes from the USA, around 60%. On the other hand, other continents, such as Africa, the Middle East, and Asia, are not well-targeted in marketing efforts. Through an organized marketing strategy, they not only can increase revenue but also diversify it.
Improved Surgery System: Year by year, the dependency on robotic surgical systems is increasing, and Intuitive Surgical has almost a monopoly in this market. Recently, J&J introduced its surgical system, Ottava, in the market. Besides, bio-implant marketing is growing too, and in 2022, it was $117 B. So, they have a tremendous opportunity to grab there.
One-Dose Vaccine: Covid isn’t going anywhere, so aren’t we. In the past couple of years, we learned and adapted to live through it. In this case, the covid vaccine is a huge opportunity to grab this market and to do that, J&J introduces their covid vaccine, which requires only one dose. Compared to other competitors, this single factor can be a tremendous advantage.
Threats – Johnson and Johnson SWOT Analysis
High Competition: The healthcare market is competitive by its nature. Companies are always trying to bring innovative and more efficient products. For example, in the last couple of years, J&J couldn’t make a stand in the market with covid 19 vaccine because competitors like Pfizer have a better and more efficient one. Not just that, but they also have to compete with Unilever, Abbott, Reckitt Benckiser, etc.
Government Regulations: Governments around the world is very sensitive about healthcare products. The government not only puts more regulations and controls the healthcare market but also sets product prices. The healthcare industry regulation policies emerged even during the Joe Biden presidential campaign. And managing in 175 countries makes it more difficult for J&J to keep up.
New Entrants: The more the industry grows, the more entrants want to have a piece. And one way to do it is with new and efficient products, including tech-health products. That’s what is precisely happening in India, where they are developing more effective and efficient products, thanks to the tech advantages.
Millions of Lawsuits: J&J is dealing with more than thousands of lawsuits. Dealing with these is one of the biggest threats, not just because it harms the company’s reputation but also damages operational efficiency. Besides, settling these lawsuits takes too much time and money, hurting the company.
Information Leak: Being a healthcare company, they have billions of data on people, medicines, etc. Because of that, it’s a goldmine for hackers to steal the company’s information. A recent incident where North-Korean hackers tried to steal covid related information from the company’s site.
[Bonus Infographic] SWOT Analysis of Johnson & Johnson
Recommendations for Johnson & Johnson
From the entire study, with a steady revenue coming in and presence over the global market increasing, J&J is doing great in the market. Here are some recommendations that they might consider.
- They should focus more on other healthcare products with tremendous market potential.
- Acquiring more tech-health-related startups or companies with innovative ideas can help increase the efficiency in the research and development wing.
- Targeting other markets could increase the overall presence in different continents and revenue.
- They must be careful with promoting products with false information and other issues and settling lawsuits as soon as possible increases operational efficiency.
- Focus on countries that have low healthcare product regulations.
Frequently Asked Questions (FAQs)
Does Warren Buffett Own J&J?
No, Warren Buffett doesn’t own Johnson & Johnson. But he has 0.02% equity in the company, worth $57.8 M, and the total share is 327000.
How Many Brands Does Johnson & Johnson Own?
Johnson & Johnson owns more than 250 brands in their portfolio. Besides these, they have other acquisitions planned.
Final Words on Johnson and Johnson SWOT Analysis
J&J has a long history of serving this world’s people with its innovative products. As we can see, with the industry growing, J&J is always trying to keep up with the R&D and overall global dominance and presence.
On the other hand, they are facing some challenges too. But, above all, they are going strong with steady revenue and acquiring new techs.
References
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- Wagner, D., & Perrone, M. (2011, April 9). Johnson & Johnson settles bribery case with feds. NBC News.
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- Johnson & Johnson Mergers and Acquisitions Summary. (n.d.). Mergr.
- Johnson & Johnson’s new robotic surgical system to rival Intuitive Surgical’s da Vinci. (n.d.). Medical Device Network.
- Bio-Implants Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028. (n.d.). IMARC Group.
- Johnson & Johnson Announces the Initiation of a Rolling Submission for its Single-dose Janssen COVID-19 Vaccine Candidate with Health Canada. (2020, December 1). Johnson & Johnson.
- Herper, M., & Garde, D. (2020, December 15). FDA scientists endorse Moderna Covid-19 vaccine, as documents provide new hints on efficacy. STAT News.
- Chang, L. (2020, August 17). Here’s Where Joe Biden Stands on Every Major Healthcare Issue. Prevention.
- Johnson & Johnson Will Likely See A Decline In Sales In 2019 Amid Generic Competition. (2019, January 24). Forbes.
- Miller, R. V., Jr. (2023, January 2). Talcum Baby Powder Ovarian Cancer Lawsuit. Lawsuit Information Center.
- Satter, R., & Stubbs, J. (2020, December 2). North Korea-linked hackers targeted J&J, Novavax in hunt for COVID research. Nasdaq.
