Johnson and Johnson SWOT Analysis

by Shamsul
SWOT Analysis Johnson and Johnson
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SWOT Analysis of Johnson and Johnson | Johnson and Johnson SWOT Analysis


Johnson and Johnson is a 130-year old pharmaceutical company in the world. It is a leading consumer healthcare market globally. In Johnson and Johnson SWOT analysis, we will learn some important factors that make this company greater. It consists of four major segments:

  • Strengths:

There are internal factors and strategies that are helping the company to grow.

  • Weaknesses:

These are internal factors that hold the progression of the company.

  • Opportunities:

These are external and internal factors that provide opportunities to grow and bring success to a company.

  • Weaknesses:

It is also an external factor that slows the development of a company.

So you can guess that all factors have specific meanings. Let’s start the SWOT analysis of Johnson and Johnson without any delay.


Company Name: Johnson and Johnson

Founders: James Wood Johnson,  Edward Mead Johnson, Robert Wood Johnson I

Year founded: January 1886, New Brunswick, New Jersey, United States

Headquarters: New Brunswick, New Jersey, United States

CEO: Alex Gorsky (Apr 26, 2012–)

Industry: Pharmaceutical, Consumer Healthcare, Medical devices

Type: Public

Subsidiaries: Janssen PharmaceuticaNeutrogenaMORE

Area Served: Worldwide

Products: See the Range

Employees (2020): 132,200

Annual Revenue (2020):  US$ 82.584 billion

Profit | Net income (2020): US$14.714 billion



SWOT Analysis of Johnson and Johnson | Johnson and Johnson SWOT Analysis

Johnson and Johnson’s Strengths:


  1. R&D:

According to Johnson and Johnson, they have spent 20.13 % of their profit on the research and development sector. In 2019, they invest 11.35 billion dollars in research and development. It is a fact that this kind of investment is vital for the success of Johnson and Johnson. In addition, the pharmaceutical and drug sector need investment in order to provide maximum results to consumers and it is a major strength of Johnson and Johnson.

  1. Profits:

In 2020, they have earned 80.86 billion dollars and its competitor Pfizer has earned 48.65 billion dollars. These statistics clearly show that Johnson and Johnson are leading in terms of market share. It is another big strength of the company.

  1. Products:

They produce consumer healthcare products, pharmaceutical products, and medical devices. Additionally, they also contain several household products like Band-aid, Pepcid, Tylenol, and Listerine. In short, they offer more than 380 products which show its powerful and diverse product range.

  1. International Presence:

It is currently operating in more than 60 countries and its products are bought and sold in more than 140 countries. Indeed, they are serving millions of people with its offerings and products. It is really surprising if you hadn’t used any product of Johnson and Johnson. This kind of strong influence of Johnson and Johnson on our lives makes it a global brand.

  1. Unwavering Market Position:

According to the investor fact sheet of Johnson and Johnson, it is a fact that 70 % of its market share comes from strong markets. This shows that it has a stable market performance which makes it a big international brand in terms of profits and presence.


SWOT Analysis of Johnson and Johnson | Johnson and Johnson SWOT Analysis

Johnson and Johnson’s Weaknesses:


  1. Irregular Revenue Distribution:

The pharmaceutical sector of Johnson and Johnson generates 50 % revenue. Nearly 32% of the revenue comes from immunology-based products. This thing clearly shows that Johnson and Johnson’s revenue comes from a specific segment which is the biggest weakness of the company. In addition, these products are also dependent on competition and expiry factors. Due to the lack of diversity, this weakness can decrease the progress of Johnson and Johnson.

  1. Unethical Practices:

Johnson and Johnson face huge criticism over its false and misleading campaign of opioids. This thing has damaged the company’s name and reputation internationally. Moreover, Johnson and Johnson allocated 1-4 billion dollars in order to settle more than 2000 opioid-related cases.

  1. A Decrease in Consumer Health Sales:

Johnson and Johnson mostly produce medical devices, consumer health care, and pharmaceutical-based products. They are limited in their offerings. They need to introduce new categories and products in order to boost its sales and profits.

  1. Gender Discrimination Allegation:

Due to the worldwide presence of Johnson and Johnson, it is really difficult to manage each and everything for them. A former executive of Johnson and Johnson sues the company for its gender discrimination and harassment issues. But, Johnson and Johnson successfully settle this issue. These kinds of allegations can cause a major weakness in the working.

  1. Kickback Allegations:

It is considered bribery. There are several pharmaceutical companies that offer kickbacks to healthcare experts or doctors in order to boost their sales through prescription. This kind of unfair practice and kickback can affect the reputation of the company negatively.


SWOT Analysis of Johnson and Johnson | Johnson and Johnson SWOT Analysis

Johnson and Johnson’s Opportunities:


  1. One-Dose Vaccine:

For Example, Moderna and Pfizer are already prepared vaccines and get emergency use authorization in the United States. But this vaccine needs two doses. Johnson and Johnson’s vaccine needs only one-dose. It means Johnson and Johnson earn more than Moderna and Pfizer. This thing gives a major chance to Johnson and Johnson to maintain and show advancement in this sector.

  1. Robotic Surgical System:

Intuitive Surgical has a 92.3 % share in the robotic surgical system. Simultaneously, Johnson and Johnson launched its own robotic surgical system. Even though the main of its operations are limited to the US, but they have the opportunity to expand their working in different countries. So, it’s a big opportunity for Johnson and Johnson to take lead in this sector.

  1. Bio-Implants:

Basically, it consists of manufacturing artificial body parts that are made from bio-synthetic materials. Its demand will be an increase in the future due to the increasing population. So, Johnson and Johnson have the opportunity to explore this segment.

  1. Acquisitions and Mergers:

Acquisitions and mergers offer opportunities to grow exponentially without investing. So lately, Johnson and Johnson acquired Momenta for 65 billion dollars. This thing helps the company to improve its position in auto-immune disease drug development and manufacturing.

  1. Tele-Health:

Basically, telehealth is based on health and health-based services through electronic means. In this way, consumers can ask for the solution to their problems. Johnson and Johnson Company is investing in this sector which surely boosts its reach and market share.


SWOT Analysis of Johnson and Johnson | Johnson and Johnson SWOT Analysis

Johnson and Johnson’s Threats:


  1. Lawsuits:

The company said it’s paying over 100 million dollars to resolve more than 1000 cases related to talcum powder. According to research, the regular use of this powder can cause ovarian cancer. Due to this reason, they face plenty of lawsuits that erode the trust of the customers and the market value of Johnson and Johnson.

  1. Competitors:

The main rival of Johnson and Johnson in the relative market is Pfizer. Pfizer also develops the corona vaccine which gives a competitive edge. But Johnson and Johnson is still in the trial process for its COVID-19 vaccine. This thing also damages the reputation of Johnson and Johnson.

  1. Government Regulations:

It is a fact that governments seriously regulate the pharmaceutical business. This thing makes it difficult for companies to work in a suitable environment. Due to strict drug regulations and heavy taxes, it is really challenging to maintain consistency in working and sales. As Johnson and Johnson is a global company, so they also face this kind of threat.

  1. Surgery Deferrals:

Manufacturing and providing medical devices is a major business segment of Johnson and Johnson. But due to the COVID-19, the drop in deferral surgeries reduces the demand for medical devices. It is another major threat for Johnson and Johnson.

  1. Corporate Spying:

Even though Johnson and Johnson invest properly in the R&D sector but its intellectual property is susceptible to corporate spying. So recently, North Korean hackers attempted to embezzle data of the COVID-19 vaccine from Johnson and Johnson’s system.


SWOT Analysis of Johnson and Johnson | Johnson and Johnson SWOT Analysis


With this SWOT analysis of Johnson and Johnson, you can easily understand the exponential growth and international presence of Johnson and Johnson. Moreover, you also learn the working and profitability of Johnson and Johnson in this SWOT analysis. There is only one thing in which Johnson and Johnson Company is weak and that is its diversification in its products. They lack diversity and most of their revenue generates from specific products. What is more? Legal disputes and settlements also impact the company’s reputation and profitability. Further, Johnson and Johnson can reduce its weaknesses and threats by finding the right solutions. Moreover, with the innovation and diversification, it is certain that it can take a great lead in the respective market. In short, Johnson and Johnson is one of the biggest pharmaceutical and consumer healthcare product companies in the world in terms of market share and revenue.


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