Johnson & Johnson: History, Products, Competitors, Market & Pricing, Exams of Nursing

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Johnson and Johnson Case Study

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Introduction

• Johnson and Johnson is located in the United States of America (Dyer,2019).
• The company was established in the year 1886.
• J&J is primarily known for producing medical equipment, pharmaceuticals, and customer packaged products. Johnson and Johnson are a known company which deals with the manufacture of surgical tools and adhesive tapes.
• It is one of the primary healthcare organizations in the world with the following firm's data.

J&J Products

• The products developed in the country include but are not limited to:
  • sanitary towels,
  • pharmaceuticals, and the in vitro medical substances (Lloyd et al.,2019).

✓ The company also manufactures biological products such as soap and other cleaning detergents. It is

a large and diversified company in the United States of America.

✓ The Johnson and Johnson operations are divided into three categories. Pharmaceuticals generate

most of the revenues and profits.

✓ Pharmaceuticals generate around forty-seven percent revenue and fifty-eight percent profits. The

medical components and the diagnostics contribute to about thirty-six percent of the revenues and

thirty-one percent profits.

J&J Competitors ✓ Despite Johnson and Johnson's dominance in the market, other medical equipment suppliers in the market pose a competitive environment for the Johnson and Johnson company (Bowie,2019). ✓ The competitors are significant because they make the Johnson and Johnson company maintain its efficacy and the quality of products to compete effectively in the market. ✓ Some of the Johnson and Johnson company competitors include Merck, Gamble, Unilever, and Bristol Myers and Squibb. Recent comparison ranked Johnson company first in the general culture score.

J&J Supply and Demand Analysis

✓ Johnson and Johnson supply various products to the market, which includes but is not limited to band-aid

bandages. The Band-Aid is an essential product developed by the Johnson and Johnson pharmaceutical

company in the year 1920. The degree of responsiveness of the customers to a change in the cost of a

particular product is known as the elasticity of demand (Kianfar et al.,2019).

✓ When analyzing the elasticity of production, the ceteris paribus assumption is usually upheld. The ceteris

paribus assumption suggests that all the factors remain constant in the course of a particular process.

✓ The Band-Aid is a product that has become necessary for almost every household in the United States and

outside the States. The Band-Aid is a highly sought-after suitable means that its demand is not affected by

the variance in the price.

✓ The price elasticity for the Band-Aid could thus be explained to be inelastic. The elasticity of price of the

demand of Band-Aid is inelastic because of the variance in percentage price. The price percentage is

higher than the change percentage in the quantity demanded.

J&J Price Analysis

• For the Johnson and Johnson company to accrue profits, it must consider the pricing strategy of its products.

Since the Johnson and Johnson company has been in the market for many years, it has created customer-

company relationships. Johnson and Johnson company created the trustworthy between the company and the

consumers.

• Consumers trust the company's products; thus, they choose Johnson and Johnson's products over the other

competitors in the market. Therefore, Johnson and Johnson's company should set its price using value-based

pricing (Garrison et al.,2019).

✓ The Band-Aid is Johnson and Johnson's product which has gained customer preference over the years.

✓ The users like the product because of its ease of use and specifications.

✓ Johnson and Johnson company should come up with a set price that would enable it to accrue profits. Thus, the

consumers prefer the Band-Aid and therefore would not fail to buy the Johnson and Johnson's product because

of the customer-company relationship.

J&J Win Strategy ✓ Johnson and Johnson are seeking to develop procurement positions in the company. ✓ The procurement development would enable the company's growth and enhance the quality of the company's services. The innovation of the procurement allows for the Johnson and Johnson company to improve its performance. ✓ The company could track fresh strategies that would enable the company to develop good consumer-company relationships, thus stabilizing the market base. ✓ The development strategy would also enable the company to develop a good relationship between Johnson and Johnson company and other organizations. Good relationships with other organizations would improve the partnership bond between the firms, thus improving the profit margins.

References

• Ali, B. J., & Anwar, G. (2021). Marketing Strategy: Pricing strategies and their influence on the consumer purchasing decision. Ali, BJ, & Anwar, G. (2021). Marketing Strategy: Pricing strategies and their influence on the consumer purchasing decision. International Journal of Rural Development, Environment and Health Research , 5 (2), 26-39.
• Annicchiarico, B., & Marvasi, E. (2019). Protection for sale under monopolistic competition: Beyond the CES. European Journal of Political Economy , 60 , 101802.
• Bowie, N. E. (2019). International business as a possible civilizing force in a cosmopolitan world. Journal of Business Ethics , 155 (4), 941-950.
• Dyer, O. (2019). Johnson & Johnson recalls its Baby Powder after FDA finds asbestos in the sample.
• Garrison, L. P., Jackson, T., Paul, D., & Kenston, M. (2019). Value-based pricing for emerging gene therapies: the economic case for a higher cost-effectiveness threshold. Journal of managed care & specialty pharmacy , 25 (7), 793- 799.