Johnson & Johnson Business Analysis Part III
One of the foremost consumer diversified health companies in the world, Johnson & Johnson (J&J) does business in the research and development pharmaceuticals, consumer health care products, diagnostics, and medical devices. The business analysis of Johnson & Johnson will include the recent economic trends influencing the business, strategies the company has used or could use for adapting to changing markets, the affects of globalization, and tactics the company has implemented or could implement to achieve its strategic goals. Most of the success of Johnson & Johnson is based on its strong hold in the pharmaceutical industry. “It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries” (Hoovers, 2012, p. 1). Although Johnson & Johnson remains competitive in the pharmaceutical and healthcare market, unemployment, uninsured and underinsured people, and government stimulus packages are three economic conditions that mainly influence the United States’ pharmaceutical and healthcare market. Unemployment is vital to pharmaceutical and healthcare market for two main reasons. First, unemployed individuals have a hard time paying for needed medication. Second, most employed individuals rely on company provided health benefits to pay for medication (White, 2012). Uninsured and underinsured individuals are another economic condition to influence pharmaceutical and healthcare market. “With no insurance or insufficient coverage, many people cannot afford prescription drugs or will forgo preventive medicine and wait until a problem has become serious enough to require more intensive, expensive treatment” (White, 2012, p. 1). The government stimulus packages also influences pharmaceutical and healthcare market. With the recent recession, the government was called to intervene to...
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