Johnson And Johnson Swot Analysis 2021

Johnson And Johnson Swot Analysis: It is Johnson and Johnson is a family business that began its journey more than a century ago. Johnson and Johnson is one of the most prominent industries in its respective fields. Its headquarters are located in New Jersey, United States. It is well-known for its manufacturing and distribution of pharmaceuticals and consumer packaged goods and medical equipment. A Johnson and Johnson SWOT analysis aids the business executives to evaluate and analyze all external and internal aspects of the business.

Johnson and Johnson SWOT Analysis is a tried and true management framework that allows brands such as Johnson & Johnson to benchmark their performance and business in comparison to their competition and the industry.

Let’s take a look at Johnson and johnson’s SWOT Analysis.

Johnson and Johnson – At A Glance


Company Name Johnson and Johnson
Industry Pharmaceutical
Founded January 1886
Founders Robert Wood Johnson I, James Wood Johnson, Edward Mead Johnson
CEO Alex Gorsky
Headquarter New Brunswick, New Jersey, U.S.
Annual Revenue $82.584 Billion (FY 2020)

Johnson and Johnson SWOT Analysis

The SWOT Analysis is an framework for strategic planning which can be utilized by managers of the company to create a positive situation analysis of the business. The Johnson-Johnson SWOT framework will aid the company in identifying their strategic elements within the company like strength and weaknesses as well as their external strategic elements like threats and opportunities.

Johnson and Johnson maintain its impressive presence in the business world only by studying the SWOT analysis regularly and enhancing their. Thus, a Johnson Johnson SWOT analysis can be very beneficial for this business.

Strengths of Johnson and Johnson in SWOT Analysis

Johnson and Johnson is awash with strengths that will allow it excel in the primary field. An analysis of the SWOT for Johnson can aid in focusing on the strengths. They are outlined below:

A stable performance in the market: Johnson and Johnson have been on this market for nearly 130 years. Through all these years, they have maintained the same level of performance. Johnson and Johnson have recorded the 58th consecutive year of dividend increase on its investor statements. The products they’ve launched comprise 25 percent of their revenue. They give an 11.8 percent return on their total investment over the course of 10 years to investors. It is therefore the most reliable and stable business organization in the world.

High-revenue: The Johnson and Johnson company generates huge income. Over the past 12 months, they have earned around the sum of 80 billion dollars. The income stream has put the company in a position of dominance against their rivals. In addition, it is 66.23 percent ahead of the biggest competitor.

A vast array in products Johnson and Johnson has an array of products. It manufactures health products, consumer goods, as well as various medical equipment. Pencil, Tylenol, Band-aid, Listerine, and several other brands for home use are controlled by the company. These products serve as the principal strength of the business. Johnson and Johnson produce more than 380 different kinds and types of merchandise.

The research and development department at Johnson and Johnson invests a significant portion of its earnings on research and development. In 2020, the company spent approximately 20% of their revenue on research facilities. Research and development is essential to this drug industry. Therefore, the significant expenditure on research and development among the major advantages that Johnson and Johnson has. Johnson and Johnson.

Highly Skilled Workers: Johnson and Johnson proudly boast the highly trained workforce they have. They mentor their employees in various training regimens. They are always in the forefront thanks to their staff.

World dominance The company is an impressive presence in more than 60 countries. Its products are sold in more than 140 countries. All across the globe depend on its products, regardless of whether they are aware of that or not. The company has a global presence. It is due to its connection to the everyday people’s daily lives that the company remains in the face of the years.

Solid community Because this firm has been on the market for more than a century, it has garnered many loyal customers who trust in its product. The company’s expertise has earned them an unwavering following that makes up a large portion of its annual earnings.

Weaknesses of Johnson and Johnson in SWOT Analysis

These weaknesses are part of internal aspects of a business. The Johnson and Johnson SWOT assessment can reveal a lot of these weaknesses to the fore.

Unscrupulous Operation: Johnson and Johnson have been found guilty of numerous illegal actions. Recently, the company was discovered that they were promoting “false, misleading and dangerous marketing campaigns” for Opioids by an Oklahoma judge. Oklahoma. In the hearing, the judge also noted that these campaigns facilitated an exponential increase in the number of deaths due to a drug overdose. Also, it led to a rise in deaths caused by a fatal overdose. There are numerous accusations which paint Johnson and Johnson as violators of the health code.

Dependence on Certain products: Rather than expanding its product offerings, Johnson and Johnson prefers to stick with its standard products. This is an obvious flaw in the company’s strategic plan. For instance there are only three drugs that drive sales in the immunology industry. This is likely to cause them to lose out to competitors.

Unequal Distribution of Revenue Around half of the revenue generated by this company comes from the pharmaceutical industry. More than half of the sales are in the immunology industry. If you look closely, only three items drive the entire department of sales. These items could easily be patent-expired. They also face plenty of competitors. This lack of variety serves as the main problem for the company.

Gender Discrimination Protests: A few years ago, when its top executive was sued for gender discrimination at work and sexual harassment. The image of the company in public image of this company has taken the brunt of this. The public is losing trust on the business.

Kickback Allegations Kickbacks are an example of corruption. Numerous pharmaceutical companies provide doctors with these kickbacks so they can prescribe these medicines for their clients. These claims are quite common in Johnson as well as Johnson.

Opportunities for Johnson and Johnson in SWOT Analysis

The opportunities are the outside elements of a business that they could profit from and gain for their own benefit. The Johnson and Johnson SWOT assessment can assist executives in considering these opportunities prior to making their next decision.

Robotic Surgery System: Recently, Johnson and Johnson have unveiled their own robotic surgical system called Ottava. Because a surgical robot when properly programmed has a better probability of success, the company is able to explore this area with less risk of losing.

Bio-implants These are manufactured to provide support to the internal organs of our body. The increasing population will likely put this area in the spotlight. Therefore, if a company investigates this area, it could help them tremendously in the future.

Mergers and Acquisitions: Johnson and Johnson are popular for their capacity to join with the right businesses at the right moment. If they continue to follow this method, it will result in their great success.

TelehealthOver over the course of the next couple of years, market for telehealth will expand by 14.9 percent. In the event that Johnson and Johnson manage to capture the market can be a very effective promotion that can help boost their sales.

One-Dose Immunization Johnson as well as Johnson have come up with a new COVID-19 vaccine that requires the use of only one dose. Even though its competition Pfizer as well as Mordenna have developed similar drugs, they will require two doses. Therefore, for every vaccine sold, Johnson and Johnson earn twice the amount of profit as its competition.

Threats for Johnson and Johnson in SWOT Analysis

The threat is the most crucial aspect of a SWOT analysis. Johnson and Johnson SWOT analysis will highlight the risks to this company , which has held it from progress.

Competitors: The market is growing more competitive every day. New competitors are coming from all across the globe. In addition, many small-scale companies are looking to expand their ways into the market. These are all competitors of Johnson and Johnson. Johnson and Johnson. But their most formidable rival is Pfizer. They have the advantage of having an earlier arrival advantage.

government regulations: These regulations by the government for pharmaceutical companies are brutal in truth. They set limits to the amount that pharmaceutical companies can make from a single product. Making sure that they are compliant around the globe is a major problem.

Legal Proceedings: There are many lawsuits filed against the company. They tend to damage Johnson and Johnson’s reputation in the public eye. This can cause a shake-up in public confidence. Recently, Johnson and Johnson have declared that they have to pay close to 100 million to settle more than 100 cases. This is among the biggest threats facing this business.

Johnson and Johnson SWOT Analysis Overview

Johnson And Johnson Swot Analysis

Conclusion and Recommendations for Johnson and Johnson

Here are some tips for Johnson and Johnson to improve their marketing game, based on experts:

  • Maintaining a clean and safe work environment to get the most effective outcomes.
  • Enhancing health and wellness products for the consumer to boost sales.
  • Assuring equitable distribution of the revenue.
  • Expand its range of products.

In the end, it can be concluded that consistent income stream and global reach are among the major assets of Johnson and Johnson. The biggest flaw is the lack of variety of products.

An analysis of the Johnson and Johnson SWOT aids the business in a variety of ways. Because it will allow executives directors to conceptually dissect the strategy of the business today and examine the results.

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