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Tuesday, October 12, 2021

Case Study On Johnson & Johnson Company

As a multinational corporation, Johnson and Johnson produce packaged medical products, pharmaceuticals, and medical devices that are geared toward consumers. Founded in 1886 in the United States, the company has over 250 subsidiaries in more than 60 countries, its products reach almost 175 countries, and it has over 130 years of experience. With a net worth of $360 billion, it is one of the largest companies in the world. As a market leader in most of the categories it operates in, it has a significant share of the healthcare and pharmaceutical industry with brands like band-aids, Johnson’s baby care products, Tylenol, Listerine, and many others. 

Almost 134 years ago, in 1886, the organization was founded by three brothers, Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson. The techniques of Joseph Lister have inspired this company. They wanted to create a surgical dressing that was easy to use and sterilization techniques that did not need spraying of carbolic acid, as Lister’s technique did. This new vision led the way for the establishment of one of the company’s most successful companies.

They came out with their first two products a year after founding the company, a manual for treating antiseptic wounds, which became an easily accessible guide to antiseptic surgeries all across the US, and first aid kits for sale in supermarkets. In the past, these kits were designed specifically for railroad workers, but are now widely used by everyone. 

The company’s most popular line of business was the heritage baby in 1894. Among its many products, Johnson & Johnson’s baby powder and maternity kits for mothers became its most popular revenue generator, helping to ensure a safer birthing environment. Johnson & Johnson was one of the first companies to introduce some exceptional healthcare products, which continues to impact their success today.

  • Mission and Vision

Inclusion and diversity are Johnson & Johnson’s core values. Each day, the company seeks to make this mission visible. In support of this mission, the company is dedicated to its vision, “Be yourself, change the world”. Johnson & Johnson’s vision describes where the firm aims to go in the future. The company is ranked as 16 among The Happiest Companies to Work For in 2017 based on both of these statements. The Johnson & Johnson mission statement is too short and simple to qualify for half of these qualities. This statement explains what diversity means, and what it means by inclusion; however, it does not describe how or who it addresses.

The mission of Johnson & Johnson is to provide safe, effective, and affordable healthcare. There are 15 “Health for Humanity 2020 Goals” that have been set for the company to complete in the next 5 years to make the places the company lives and works better. Those objectives have been achieved as seen in the fact that more than 160 million doses of medicine have been given to children in underprivileged communities. This supports the company’s mission by providing medicine to a wide variety of societies and by focusing on the physical well-being of its consumers. Through always putting people first, the company’s vision, mission, and goals align with the Strategic Framework Foundation.

Categories Of Products

Johnson and Johnson’s product line is divided into three categories.

  • Consumer Products

The majority of these products revolve around skincare, hygiene, and self-care. There are several popular products available, including Neutrogena, Tylenol, Benadryl, Listerine, Band-aids, Johnson’s no-tear shampoo, etc. However, these products only contribute 5 percent of the company’s incremental revenues. 

  • Healthcare Equipment

It has developed products that have benefited the healthcare sector in great measure through technology and science. With smarter technology, it is possible to develop devices that have improved quality and reduced cost in fields such as orthopedics, surgery, and neurology. The incremental revenue for this product line is only 3% despite a large assortment of medical devices.

  • Pharmacies

In the pharmaceutical sector, Johnson & Johnson has always been at the forefront of research. Their impact on the pharmaceutical sector has been tremendous. Thus, 92% of their revenues are generated by their pharmaceutical successes. In addition to Ortho Gynol, Procit, and Zytiga, they have a number of achievements in this field.

  • Marketing Strategy

Historically, Johnson & Johnson has always been known for quality, and this aspect has helped in building loyalty and trust with its consumers. Today, when natural beauty and health products are highly valued, the company can easily tap into this market to sell its products. Having a broad audience has allowed it to become a household name and a renowned retailer. 

A key part of J&J’s marketing strategy is also its distribution channel. For the production and sale of their products, they work with local vendors. De-centralized business operations give more control to employees on the ground, allowing them to make decisions according to local conditions. At the same time, online marketing has been accepted as a method for selling products, which has worked to their advantage.

From the beginning, emotional marketing has been a core part of the brand’s strategy. By using strong messages to explain their focus on skincare, self-care, and essential products, they are conveying their commitment to the industry. Advertisements such as “choose gentle” or “no more tears” helped to connect with the target market and thus increase sales. Parental trust and loyalty have been built through storytelling campaigns for J&J as well.

  • Competitors Of Johnson & Johnson

There are several competitors of Johnson & Johnson, including, Pfizer, Bristol Myers Squibb Unilever, Merck, and Procter & Gamble. The company ranks 1st in terms of its overall culture score on Comparably, against its competitors.

  • Success Factors

In a market where most companies struggle in the early stages, Johnson and Johnson have outlasted most of them. Despite its size, the company has sustained a significant market share. 

Here are a few points that prove its success

  • Organizational structure

 They follow a decentralized organization structure, which has benefitted their company’s growth, and are one of the few that are capable of following such a structure.

  • The healthcare industry

Skincare, self-care, and essential care products have a positive impact on brand recognition.

  • Investor’s interests

Keeping shareholders’ interests in mind has always been a priority for the company.

  • Relatively few CEOs – A legacy of 134 years and nine CEOs. Clearly, the company’s strategy has worked.
  • Developing new products and services – A large part of the company’s success is due to its research and development department.
  • Satisfaction of employees – Additionally, the company has not forgotten its employees who have contributed to its success. The company has implemented a decentralized organizational structure, which has greatly improved the engagement of its human resources.


By delivering maximum value in each market, Johnson & Johnson continues to lead the market. As a consumer goods, pharmaceutical, and medical device company, Johnson & Johnson has proved to be a leader in the healthcare industry. AAA-rated company has proven itself, with roots that are untouchable by even the strongest competition. A strong future is in store for this company, and their opportunities are wide.

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Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

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