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Analytical Essay on Johnson and Johnson Strategic Capability

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Introduction Internal analysis

Strategic capability mentions a business’ aptitude to attach all its skills, resources and capabilities in order to get competitive benefits, and therefore survive and rise its value over the time (Nickols, 2016). While strategic capability took into account the strategies a business can use include the main focuses on the assets of an organization, their resources & their market position, their projection and how well that will be able to employ strategies in upcoming future. There is no single process or any matrix for measuring strategic capability (King, W.R., 1995). This report will focus Johnson and Johnson, which is an important company operating in the consumer goods industry. The report will undertake its internal analysis, as well as the external analysis, as well as TOWS

Johnson and Johnson strategic capability:

Resources are the creative assets both tangible for example, cash and plant machinery are also included in intangible, for example technology, reputation and culture and also human skills, capacity for communicating properly and teamwork and motivation in control by the organization Grant. The main strategic capability of Johnson and Johnson is their pricing strategy which differentiates them with their competitors.

Core competencies:

For Johnson and Johnson, their active competence is established in their achievement rate, related to their procurement along with the profits and new capabilities which are generated as a result. For instance, their price saving practice when obtaining a steady strategy, as well as the comfort with which they infer such interests linked with limited options.

Value chain:

The continuous reformation strategy e impacts the value created by Johnson and Johnson as a company spread well outside its operations. There are many chances to exploit the positive impacts and reduce the risks at each stage of Johnson & Johnson’s value chain. Consequently, the value chain map defines the limits of business impacts, and helps for better understanding and influence opportunities together with the stakeholders. Based upon the business facts, the strengths and weaknesses are assessed as following.

Strength:

  • Universal sales continue to increase with ongoing plans for upcoming further geographic and different market solution growth to increase sales growth.
  • Johnson and Johnson use a comfortable business model that allows to adapt rapidly to market changes and there trends, and also focusing on entrepreneurship, issues solving methods, and innovation.
  • This business model has been led to many creative modern and new innovative medical devices, pharmaceutical medicine, and other consumer healthcare product announcements, further distinguishing the company from its competitors.
  • Most of its portfolio brands are respected by a extensive range of client who frequently return to these products for their reliability and quality and their value.
  • The company has improved its brand worth through awards like the most dependable company and one of the topes companies to work for around the entire world.

Weaknesses

  • Pharmaceutical companies have been evaluated and criticized for their huge prices, which many customers have issue paying so this has run to worries concluded corporate greed.
  • There are some protest occurs against the products of Johnson and Johnson’s products, including its pubic net implants, which have ran to a spoiled there reputation.
  • The company is dependent on sure products and bit niche drugs for the pharmaceutical industry.
  • According to recent reports that employees of this company have taken company secrets and information, which has damaged its hard work to create an ethical dilemma and responsible workplace.

Threat Opportunities

Weakness Strength

TWOS analysis

  • The company’s achievement with any product announcement, like medical devices, and pharmaceuticals and different healthcare products are often tense to governing approval more so than market taking. This can also differ from country to country, which additional confuses the possible for achievement with new products.
  • There are a lot of products recalls, which are threat for the company’s credibility.
  • Generic pharmaceutical products are very low price which are significant threat for Johnson and Johnson.
  • U.S. competition has the awareness of being more dependable than Johnson and Johnson with many others products, particularly in light of product memories and protests about the opposing side effects of some of its products.

Opportunities

  • Cross-selling between medical devices, pharmaceuticals, and diagnostics related to care-giving and specific therapies for oncology, diabetes, and other health issues.
  • There are opportunities for further acquisitions to strengthen its position, further diversify its product portfolio, expand its territories, add to its resource and research capabilities and grow revenue streams.
  • There are new medical therapies and findings that align with some of the company’s core capabilities, providing new opportunities for additional
  • The diagnostic market appears to be growing, which positions Johnson and Johnson as a first mover in many applications.
  • Some countries are now banning generic medicine, which gives Johnson and Johnson an advantage.

Weaknesses

  • Pharmaceutical companies have been evaluated and criticized for their huge prices, which many customers have issue paying so this has run to worries concluded corporate greed.
  • There are some protest occurs against the products of Johnson and Johnson’s products, including its pubic net implants, which have ran to a spoiled there reputation.
  • The company is dependent on sure products and bit niche drugs for the pharmaceutical industry.
  • According to recent reports that employees of this company have taken company secrets and information, which has damaged its hard work to create an ethical dilemma and responsible workplace.

Strengths

  • Universal sales continue to increase with ongoing plans for upcoming further geographic and different market solution growth to increase sales growth.
  • Johnson and Johnson use a comfortable business model that allows to adapt rapidly to market changes and there trends, and also focusing on entrepreneurship, issues solving methods, and innovation.
  • This business model has been led to many creative modern and new innovative medical devices, pharmaceutical medicine, and other consumer healthcare product announcements, further distinguishing the company from its competitors.
  • Most of its portfolio brands are respected by a extensive range of client who frequently return to these products for their reliability and quality and their value.
  • The company has improved its brand worth through awards like the most dependable company and one of the topes companies to work for around the entire world.

Feasibility:

The Director, Feasibility is the foundation of strategic, climbable business operations, feasibility related data and technology, and relationships with internal and external stakeholders. This experienced data, technology, and operations leader will deliver and

This position is a business focused role and is driven by business objectives, with importance to work both independently and collaboratively and will be empowered to identify areas for feasibility capability growth and implement strategies to facilitate that growth. Play a key role on the Feasibility leadership team with special focus on effective product development, training, and launch of enabling technologies, creation and use of a feasibility-specific data library, and coordinated data, process, and tool subject matter expert (SME) relationships.

Firm financial position:

There are a number of reasons that attract investors towards large-cap companies such as Johnson & Johnson with a market cap of $357.56B. One such reason is its ‘too big to fail’ aura which gives it the appearance of a strong and healthy investment. However, investors may not be aware of the metrics used to measure financial health. These factors make a basic understanding of a company’s financial position of utmost importance for a new investor. Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

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Debt-to-equity ratio standards differ between industries, as some some are more capital-intensive than others, meaning they need more capital to carry out core operations.

Snowf matrix:

It is one of the most important in marketing which clearly define the market position and how to expend the market.

There are four major part of snowf matrix

  • Market development
  • Diversification
  • Market penetration
  • Product development

Market Penetration.

The first part in the Ansoff matrix is market penetration. It is often adopted as a strategy when the organization has an existing product with a known market and needs a growth strategy within that market.

Market Development.

Market development is the second market growth strategy in the Ansoff matrix. This strategy is used when the firm targets a new market with existing products. | For a smaller enterprise, this strategy entails expanding from a current market to another market where its product does not currently compete.

Product Development.

Product development in the Ansoff matrix refers to firms which have a good market share in an existing market and therefore might need to introduce new products for expansion. Product development is needed when the company has a good customer base and knows that the market for its existing product has reached saturation. In this case, the market penetration strategy is no longer practical. A new product development strategy that caters to the existing market is a better approach.

Diversification.

The diversification strategy in the Ansoff matrix applies when the product is completely new and is being introduced into a new market.

  1. King, W.R., 1995. Creating a strategic capabilities architecture. Information System Management, 12(1), pp.67-69.

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Analytical Essay on Johnson and Johnson Strategic Capability. (2022, August 12). Edubirdie. Retrieved February 4, 2023, from https://edubirdie.com/examples/analytical-essay-on-johnson-and-johnson-strategic-capability/
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