The SWOT Analysis of Johnson & Johnson

by Shamsul
Johnson & Johnson SWOT
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SWOT Analysis of Johnson & Johnson

Johnson & Johnson began in 1886 in the USA. Now, it’s a big brand worldwide that provides health and healthcare products. This SWOT analysis of Johnson & Johnson will give a clear idea about the company’s competitive and financial performance. They sell their stuff in over 150 countries and are the top supplier in the industry. The company was started by Robert Wood Johnson I., Edward Mead Johnson, and James Wood Johnson. They’ve been around for more than 130 years and are now one of the most powerful brands out there. In this SWOT analysis of Johnson & Johnson, we will cover everything about the company such as its strengths, weaknesses, opportunities, and threats.

Johnson & Johnson makes lots of things like band aids, baby stuff, and products for your face and hair. They also have a part of the company that makes medicine called Jannsen. The company sells their stuff in over 150 countries all over the world. They do a lot of research to make healthcare better, which is why they’re a big name everywhere.

Company Name: Johnson & Johnson

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

Founded: 1886

Headquarters: New Brunswick, New Jersey, United States

CFO: Joseph J. Wolk

CEO: Joaquin Duato (2022-)

Type: Healthcare and Pharma

Sector: FMCG

Tagline: “I am Stuck on BAND-AID Brand”.

Unique Selling Proposition (USP): Johnson & Johnson makes new and helpful healthcare stuff, and people trust their brand.

Customers: Customers looking for high quality health and healthcare products.

Target Consumers: Hospitals, clinics, and urban families.

Revenue: 94.943 billion USD (2022)

Net Income: 17.941 billion USD (2022)

Products Offered by Johnson & Johnson

  • Medical devices
  • Consumer health products
  • Pharmaceutical products

Competitors of Johnson & Johnson

  • Merck
  • Novartis
  • Bayer
  • Pfizer
  • GlaxoSmithKline

SWOT is a tool that looks at a business’s strengths, weaknesses, opportunities, and threats. It helps analyze what’s good and not so good about the company and plan for the future. We’re using it to study Johnson & Johnson. Keep scrolling to read the complete SWOT analysis of Johnson & Johnson.


Strengths of Johnson & Johnson | SWOT analysis of Johnson & Johnson

The strengths in SWOT analysis of Johnson & Johnson highlights its strong areas of business. Keep reading to unearth its strengths:

  • R&D

According to Johnson & Johnson’s report for the Q3 of 2020, they used about 20.13 percent of their money they made to do research and make new things. Doing research is very important in making medicine, and Johnson & Johnson is good at it because they spend a lot on it.

  • Increasing Revenue Stream

In the past year, Johnson & Johnson made 80 billion dollars in profit, while its competitor Pfizer made 50 billion dollars. Johnson & Johnson is ahead of Pfizer, and because of this, they are the top company in their industry.

  • Diverse Products

Johnson & Johnson is a company that creates things like health stuff for people, medical tools, and medicines. They have famous brands like Pepcid, Band-aid, Listerine, and Tylenol. Having lots of popular products is what makes Johnson & Johnson really strong.

  • International Reach

Johnson & Johnson is in more than 60 countries, and they sell their stuff in over 150 countries. Because they’re all over the world, lots of people can buy their products.

  • Strong Market Performance

Johnson & Johnson has made a good profit for 58 years in a row. About 70 percent of that money comes from being the top choice in the world for some products, and 25 percent comes from things they make themselves.


Weaknesses of Johnson & Johnson

The weaknesses in the SWOT analysis of Johnson & Johnson identifies its weak factors. Read on to find out its main weaknesses:

  • Uneven Distribution of Revenue

About half of the money Johnson & Johnson makes comes from medicines. Another 32 percent comes from medicines that help your immune system. But, a lot of their money relies on just a few products, and when those products can’t be sold anymore, it’s a problem for them. This is something not so good about Johnson & Johnson.

  • Decreasing Sales in Consumer Health Segment

Out of the important parts of the business like medicines and medical stuff, the consumer health products make the least money. If they can sell more of these products, it will help the company make more money and have a better mix of products to sell.

  • Allegations

A kickback is like giving a secret gift to someone to make them do something for you. Some drug companies give secret gifts to doctors so they’ll give more of their medicines to patients. A person who told on Johnson & Johnson said they gave secret gifts to promote Remicade and Simponi. This is something not fair that happened to Johnson & Johnson.


Opportunities for Johnson & Johnson | SWOT analysis of Johnson & Johnson

The opportunities in the SWOT analysis of Johnson & Johnson focuses on the opportunities that the company can capitalize on.

  • Covid-19 Vaccine

Pfizer and Moderna have vaccines that need two shots, but Johnson & Johnson’s vaccine only needs one shot. This is a good thing for Johnson & Johnson, and it can make them a lot of money because it’s an attractive opportunity.

  • Bio Implants

They are fake body parts made from special materials that are like natural stuff, and they’re made by people. People think that by the year 2030, more of these fake body parts will be needed. This is a good chance for Johnson & Johnson to grow in this area.

  • Acquisitions and Collaborations

When companies merge or buy other companies, it helps them have more kinds of products without spending a lot of money to make them themselves. The company recently bought Momenta for 65 billion dollars, and this made Johnson & Johnson even better at making medicines for diseases that affect the immune system.

  • Telehealth

This sector is about providing health services using computers and the internet. Johnson & Johnson saw a chance to do well in this sector, so they put money into a Telehealth startup called “Thirty Madison”.


Threats to Johnson & Johnson | SWOT analysis of Johnson & Johnson

The threats in SWOT analysis of Johnson & Johnson highlights those factors that can totally disrupt the company’s business in the competitive sector. Below, we have listed some major threats to Johnson & Johnson:

  • Court Cases

Johnson & Johnson had to pay 100 million dollars to settle more than 1000 cases about their talcum powder. People who sued said that using the powder caused them to get ovarian cancer. These lawsuits make people think not so good things about the company, and it’s a big problem for the company.

  • Gender Discrimination Charges

In the beginning of Johnson & Johnson’s policy about treating everyone fairly, they promise to treat men and women equally. But there is news that a former top boss at Johnson & Johnson is taking them to court, saying they were not treated fairly because of their gender, and they were treated badly. If it’s shown that these things really happened, it could be a big problem for the company and make people doubt their promises.

  • Heavy Competition

Johnson & Johnson’s main competition is Pfizer. Pfizer has a new COVID-19 vaccine that works really well. Johnson & Johnson also has a vaccine, but people want the Pfizer one more.

  • Surgery Deferrals

One of the main things Johnson & Johnson does is sell medical tools. But, because of COVID-19, this part of their business has been doing not as well. This happened because surgeries had to be postponed because of the pandemic.

  • Corporate Surveillance

Johnson & Johnson spends a lot of money on finding new things through research. But, because they do this, other companies might try to steal their smart ideas. For instance, some hackers recently tried to steal information about Johnson & Johnson’s research on Coronavirus.


To Sum Up | SWOT analysis of Johnson & Johnson

Johnson & Johnson is famous worldwide for its health products, and it’s been around since 1886. When we look at the SWOT analysis of Johnson & Johnson, we can see that the company has made a strong position for itself in its sector. Because of the growth of digital marketing, Johnson & Johnson faces a big challenge in handling its money and products for customers. The company tries to treat men and women the same, but there have been complaints about this. This ends the SWOT analysis of Johnson & Johnson.


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