Case study of Johnson & Johnson Company – World’s no.1 Healthcare Institute

Debjani Kundu
Debjani Kundu  - Content writer trainee in CIA
7 Min Read

Health comes first”—the tagline of Johnson & Johnson company is visible in their innovative and diversified products. “The use of Sterling stute and soothing bandages is mandatory for the well-being of the patient”—the idea was the reason behind the foundation of Johnson and Johnson. The diversified and innovative medical equipment and dressing of doctors and nurses captured the attention of the entire world.

The world’s largest healthcare company has been attempting to help patients for more than a decade. The largest and most reputed healthcare company is serving medical equipment worldwide to heal the world.

Success Story and Diverse Products of Johnson & Johnson Company:

The success story of the company is quite demonstrative, showing that it has been enjoying consecutive success for many decades.  8 people were managing the company at the beginning.

Robert General Johnson and his brother took over the company at the company’s highest time of recognition as a leading one in 1932. Under his leadership, a new strategy was approached and approved, named decentralization.

In 1943, the company director, General Johnson, published a documentary named “Our Credo.” In the documentary, the company depicts their perceptions regarding their business principles and strategy.  The Credo states that the first responsibility is to cater for the consumers using its products. The second responsibility is to cater to the employees engaged with the company. The third responsibility is to take care of the community and environment. The fourth one is to take care of the stakeholders.

Allegations and Cases of Johnson & Johnson Company:

The first allegation was popped out in 1982, the extra-strength drug TYNEOL, manufactured by McNeil Consumer, a division of Johnson & Johnson Company, was found tampered with Cynaide in several pharmacies of the U.S. The extra-strength drug took away almost seven people from the USA. The prior allegations of TYNEOL was quite responsible for tarnishing the credibility of the company.

In 2021, another allegation popped out regarding talcum powder for infant use. More than a million people accused J&J company of ovarian cancer and linked it to another cancer caused by asbestos exposure due to the use of Talcum powder.

Epic Revival Approach: With the massive media coverage of the TYNEOL allegation the company handled the situation very compassionately and calmly. It took an immediate reaction call on that topic and made a product recall probably 31 million bottles of TYLENOL all over the USA. The company halted the entire advertisement regarding the product TYLENOL. The company filed a lawsuit against the malevolent suspect, who reportedly switched the most popular extra-strength capsule with harmful cyanide. It also provided financial and medical assistance. It also declared not to use the product until the

In the talcum powder case study, the company declared itself a bankrupt foundation and spent 9 million dollars on each lawsuit. The company could not revive the most trending products, TYLENOL and infant talcum powder.

Business Strategy: Johnson &Johnson Company is always at the top position in the healthcare industry with its unique business strategy.

Firstly, the success of the company always relies on its credo and reflects on the foundation of the credo values. The company has strived to be a brand in the healthcare industry, with three major human healthcare product lines worth 60 billion dollars.

Secondly, the unique business model of decentralization governance of the Johnson & Johnson company helps to promote faster and more accountable business lines in the entire world. In the first phase of decentralization, the company enables MAARS (Management Awareness and Action Review System). With this management strategy, the company can close the decision gaps between local plants and the global standard office. The strategy always helps the company to control and identify health and safety risks for consumers and employees.

Thirdly, the company always make its decisions with patience and intellect to balance long-term and short-term decision. The company invest in innovative technology, research and development (R&D) of the products for the welfare of human being and invest in the development of its employees.

The invention of brand aid has added a new wing to the history of the healthcare industry. The company has invested 6.3 billion dollars in the invention of brand aid and it is investing in the invention of HIV medicines.

Fourthly, the company always concentrates on people and their values, that rely on “living with credo.” The company is trying to provide exclusive products in reasonable prices.

The company is concerned with all health products that can increase the value of stakeholders all over the world. The company can improve the application of the credo values in any particular area investing in the community and taking care of health care products.

Sales Record of Johnson & Johnson: Since 2015 the sales record of the company has been 71.2 billion dollars worldwide. Domestic sales have increased 3.2% and international sales have increased by 1.8% and the negative impact on the sales product is 0.6%. In 2017, the company sales were 78 billion dollars worldwide. It has been investing in influenza, HIV, and other vaccine products for the betterment of human health.

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By Debjani Kundu Content writer trainee in CIA
Birthday:24/05/1997 Working as a content writer trainee in CIA Trying to write down the thoughts regarding various factors including business,social and economy purpose.
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