JOHNSON & JOHNSON CASE ANALYSIS

Johnson & Johnson is a multi-national company comprised of various operating companies situated all over the world, and the world’s most comprehensive and broadly based manufacturer of pharmaceuticals, medical devices and high-value diagnostic products and services for the global health care community. General Robert Wood Johnson and his two brothers started a company in 1885 that would eventually help revolutionize the surgical and medical fields with innovative products and services. The products made by the various operating companies affiliated with Johnson & Johnson are summarized as follows:
Johnson & Johnson products and services
1. Consumer products
These includes products designed to various
Each firm is held responsible for setting, managing and meeting its own market and financial goals and targets.
• Strategy in the more recent past has been characterized as driven by a realization that the nature of the healthcare industry is changing, and in some segments changing rapidly. In an effort to contain costs, increase convenience and reduce response time, J&J firms have tried to insure that health care providers are guided by J&J strategy so that they place all their orders with a single J&J vendor.
• Similarly, in the J&J consumer products firms, large chains such as Wal-Mart have become important customers. These customers prefer a single point of interaction with the company, which fits well with J&J supply strategy. However, the practice of having multiple J&J operating companies competing for the business of many of the same large commercial buyers and individual customer market segments has been found not to be a sound component of J&J's overall market strategy.
• More recently there has been a shift in J&J strategy necessitated by the need to respond proactively to new market developments and changes. The company has responded by creating two large units – the Customer Support Center which markets products by the various operating