SWOT Analysis

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Introduction

Johnson & Johnson, founded in 1886 in New Jersey, is a multinational health care products and medical devices manufacturing company, with about 250 subsidiary companies and over 120,000 employees in 60 countries. Its products are now sold in over 175 nations. Also, it was ranked as the 35th on the 2017 Fortune 500 list.

Johnson & Johnson owns many famous brands of medications and first aid supplies such as Johnson’s baby care products, Neutrogena, Tylenol, Clean & Clear, Band-Aid, etc.

Strength:

As one of the largest health care manufacturer, with a history of over 130 years, Johnson & Johnson has a strict and complete production system, as well as great marketing strategies, which make it become a trustworthy household name. The numerous brands owned by the corporation cover many areas such as medication, medical devices, skin and beauty, bandages, and so on. It enables Johnson & Johnson to occupy a large market share in the industry.

Moreover, Johnson & Johnson provides a good working environment and corporate culture. The diversified background of its employees not only helps it to build a positive brand image, but also get a better understanding of its customers.

Weakness:

The broad brand portfolio makes it a big challenge for Johnson & Johnson’s operation and management. More products means more complex relations with suppliers and customers. The corporation doesn’t do much on market segments and market research before launching a new product as well. Many of its products are just general and replaceable, when customers today are demanding more personalized products.

Opportunities:

Johnson & Johnson’s merges and acquisitions with reputable local companies enable it to enter into more countries and markets, thus occupying more market shares. For example, it acquired Dabao, a Chinese affordable skin care brand that enjoys a high reputation, to enter into the low-end market in China. The combination of local brands’ sales network and high product quality brings Johnson & Johnson the opportunity to become the leading brand in these markets.

Threats:

Some of Johnson & Johnson’s products lack long-term clinical validation and bring litigation troubles. In 2017, thousands of women sued over Johnson’s baby powder, claiming it caused their ovarian cancer. Johnson & Johnson had to pay over 400 millions in this lawsuit. Multiple times of recalls of its products, including medicine, also put negative effects on the brand image. Customers and experts start to doubt about Johnson & Johnson’s quality control management, which challenges its ability to handle with public relations crisis.

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