Table of Contents
Inauguration
Corpus
VRIO Analysis
To sum up,
Introduction
Johnson and Johnson Corporation is a multi-national American corporation that produces health care and consumer products. The company is divided into segments such as pharmaceuticals, medical devices and consumer goods (Jnj.com 2020). Robert Wood Johnson I. Edward Mead Johnson Sr. James Wood Johnson founded the company in 1886. New Brunswick in New Jersey is where the company’s headquarters are located.
BodyThe company’s industry context is the analysis method that is used to determine the environmental conditions in which it operates. Scanners focus their attention on macro-environments that may affect productivity and other conditions related to the business operations. Analysing the context will help the determine its target market, as well future trends.
Johnson and Johnson’s organisation is divided into three major segments.
This will include both skin care for babies and adults.
Anti-viral drugs are a good example of pharmaceuticals.
Medical devices and diagnostic segments.
Resource-based views allow companies to organize their resources, and then combine them with the compatibilities they have for more efficient productivity. In order to determine the profitability of the company, it is important to consider the capabilities and resources. This will also allow you to analyze the future requirements for resources and skills that are needed to compete on the market. Johnson and Johnson’s main sources of revenue are Healthcare and Medical Devices. The company’s pharmaceutical segment earns about 45% and accounts for 605 of its value. The two main divisions within the pharma section, Immunology/Oncology in particular, generate the most revenue. The company’s revenue is derived from these two divisions, which account for one quarter.
Intangible and physical assets are considered the productive assets. Cash and equipment are the tangible assets of a company. The company’s total assets in 2018 were 152.954 USM$. In 2019, the total assets of the company will reach 155MUS$. Intangible assets are reputation, culture and technology. The company has a solid reputation in medical devices and pharmaceuticals. The company is known all over the globe. The company’s dynamic competence was demonstrated by their high success rate, as well as their innovative techniques for protecting tangible assets. These included cost-saving exercises during the acquisition of the firm and the benefits that they extrapolated from limiting cultures clashes. Mergers & Acquisitions are the primary means by which the company obtains tangible assets. In addition to their successful mergers and acquisitions, the company also achieved success with their acquisitions of MD&D Franchise and DePuy Inc. This acquisition not only allowed them to obtain a valuable brand, but it also gave them access the the hip replacement technology. This way the company had access to the $270 million dollars per year.
Johnson and Johnson’s primary resources are its technologies, which include their advertising, brand, and sales value. They also have a policy of choice, a technology and patented.
Advertising: the firm has defined their baby product range based on a well-defined audience profile. It also defined it based upon the pregnant mothers. Such delicate symbols create an instant affinity for the brand. The company launched a campaign called for every Face in Indonesia, to empower teenager girls. The company promotes these strategies as well as content-based advertising in newspapers and social medias.
Technology: The company is focusing on digital and ERP technologies to help contribute more towards the strategy of sustainable growth. It is well known that the company loves innovation. Enterprise Resource Planning was created by the company to help manage inventory, suppliers and auditing trials. With the help of pharma technologists, they have improved their supply-chain policies. The company also focused on the development of hi-tech new strategy and increased investment in supply chains. Johnson and Johnson use Internet of Things sensors for collecting data. The company uses analytics systems to prevent machine failures. This is done by predicting and analyzing the real-time models, as well as the range of processes.
Reputation: The company’s reputation was quite good due to its wide range of medical devices and medicines. The company’s involvement in the opioid epidemic has caused a crisis in its reputation. This has affected the brand position as well, and it now ranks 57th out of a possible 8th.
VRIO AnalysisJohanna Johnson’s brand is valuable because it reduces the risk of competition by utilizing resources effectively. The company has developed a significant asset by using the latest technological devices. The technology is used by the company to gather data. The company can use this data to analyse the current and future market demands. By utilizing the latest technologies, the company can also gain a better understanding of the policies that govern the supply chains of its products. The company will be able to keep up with the competition and their competitors. The company will be able to communicate well with its target market, and know their demands. Advertising strategy is a valuable resource as it allows the company to cater to the level of innovation that target markets are looking for. The company can reach more people and increase its market share by using social media and advertising. Johnson and Johnson’s branding is the main factor that makes the company unique. Brand image is high compared to the other alternatives in the market. A company can create a unique brand image by leveraging their customer base and reputation. A few companies can afford to pay for the cost of copying the brand’s service. The company’s marketing strategy is to promote the concept of family care, which has a uniqueness and is an originality. Johnson and Johnson is unique in its past and business and therefore, it’s hard to imitate. It is important to note that the tangible assets have been built over time and cannot be diluted by a new company entering the market. Patents are another important resource that helps to grow the company. Patents are a complex system. Suppliers won’t risk their relationship with a company that makes them huge profits.
It is important to consider both the inward and outward environmental conditions when preparing the company’s three-year plan. Johnson and Johnson gives the expensive loyalty courses to the employees. This is a way for the company to build an organisational environment that will help it create a matrix of competency in Human Resources. The company should focus on its internal environment rather than relying on patents, which will soon expire. The company can create a more consistent image by experimenting and improving the technology.
ConclusionFrom our discussion about forces that affect macro-environmental context, we can see that Johnson and Johnson is facing a lot of competition from large companies that are in the industry. They are not very active in their strategies, which makes it difficult for consumers and other stakeholders to notice them. The company’s resource-based analyses show that its resources, both tangibles and intangibles, are capable of dealing with both internal and external opponents. The company must focus on its strategic implementation to maintain their resource-competence levels.
