Johnson and Johnson Case Analysis Essay examples

1071 Words 5 Pages
Johnson and Johnson Case Analysis

Introduction:
Johnson and Johnson, commonly called J&J for short, is one of the world’s well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company’s most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical
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My “cluster” approach would bunch together companies that are similar in nature, working on similar goals, performing similar functions and have similar customer bases.

General Environment and Industry Analysis: Potential Opportunities and Threats
The external environment consists of opportunities and threats. J&J can greatly benefit from taking advantage of opportunities. An opportunity that J&J can benefit from is the changes in Medicare insurance that have recently been enacted providing increased medical coverage to seniors with Medicare by covering prescription drugs. An article that I read in the Wall Street Journal stated that the new plan increases prescription drug coverage for senior citizens dramatically. This should increase the amount of prescription drug use in the U.S. Since pharmaceutical sales is J&J’s largest segment, increases in prescription drug use can potentially increase sales and profits for J&J. Another opportunity that J&J can take advantage of is catering to the healthcare needs of the baby boomers who are expected to be seniors in the near future. The population of people ages 65 and older is expected to grow by 30% between 2004 and 2015. Currently senior citizens account for 1/3 of the total prescription drug. As the baby boomers age and become senior citizens J&J can increase sales

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