Based on the consumer segment of Johnson & Johnson, we analysed the current situation of the company and came up with strategic recommendations on how it can enhance its position in the market.
4. Situational Analysis
Internal Situational
•Works especially hard to keep the
employees happy
•Numerous Employee Benefits
•Adoption, Fertility and
Surrogacy Benefits
External Situational
•Fortune 500 Global Brand
•Established in 1886
•Current Stock Price: $126.5
•Main Competitors: Unilever and
P&G
Mission
“Caring for the world, one
person at a time”
Credo
Guides the company to shoulder the
responsibility to their customers, employees and
communities
6. Strengths VS Weakness
Strengths:
• Wide Range of Products
• Established Brand Name
• Strong and Strategic Corporate Social Responsibility
• Strategic Mergers and Acquisitions
• Huge Supply Chain and Good Relationships with Suppliers
Weakness:
• Dampened Brand Image
• Rely on the International Market
• Not in-line with the Industry Demands:
• Organic Products
7. Opportunities VS Threats
Opportunities
Booming opportunities in the beauty industry
Demand of natural and organic skin care products(including
anti-age products)
Trend of going green
Threats
Dampened brand image
Decrease in Baby care segmentation
Consumer products rely on overseas sale
9. Main Competitors
Unilever NestleProcter & Gamble
• Traditional consumer
goods company
• 83 brands around the
world
• Growth in a fast pace
• Huge Ambitious
• Johnson & Johnson top
competitors
12. Porter’s 5 Forces
Competitive
Rivalry
Threat of
New
Entrants
Bargaining
Power of
Buyers
Threat of
Substitutes
Bargaining
Power of
Suppliers
Low:
Oligopoly market structure
High cost of entry
Protracted process of building a well-known brand
Low & High:
Brand-sensitive customers are loyal to a
certain brand
Price-sensitive customers have low
switching cost
Low:
Numerous partnerships
Suppliers are eager to
cooperate with Johnson &
Johnson
Low:
Most of consumer products
are in rigid demand
High:
Similar products with similar
price
POD of products are not
obvious
15. Organic Skin Care Products
• Shifting lifestyles are driving consumers to demand healthier, safer and more ethically
conscious products and Johnson & Johnson has not tapped into the industry yet.
• Our Recommendation for Johnson & Johnson is to (re-launch or) extend their product
line to include more natural skin care products for women and babies.
16. Damage Control Department
• Johnson & Johnson has recently fallen prey to a scandal that proved
them to have failed to adequately warn consumers about their talcum
powder's potential cancer risks.
• Our Recommendation for Johnson & Johnson is to create and
facilitate a new department solely based on being able to better
predict and handle situations like these and be able to own the
conversation.
• J&J has worked way too long and way too hard to earn the brand
reputation they hold now. Keeping that intact is and should be a top
priority.
17. • Local businesses have the advantage of being protected by the local laws. When moving into a new
geographical location, JnJ is always fallen subject to stricter laws.
• To tackle this issue better, our recommendation is to cooperate with local companies in terms of
mergers and acquisitions as well as maintaining good relationships with a market leader to benefit
from their market knowledge and insights.