Johnson and Johnson: A Leader in the Healthcare Field
Johnson & Johnson (A)
Philosophy & Culture
Case Analysis
Introduction: Johnson & Johnson (J&J) was founded 121 years ago based on the need for sterile medical supplies to treat patient’s wounds. Post-operative mortality rates were a grim 90% and after attending a seminar on “antisepsis” Robert Wood Johnson, an apothecary, saw this as an opportunity to start a much needed company. With $100,000 in capital and the help of his brothers, James and Edward, they established Johnson & Johnson. Their prospect with J&J was “to manufacture and sell medical, pharmaceutical, surgical and antiseptic specialties and analgesic goods.” Johnson & Johnson quickly became a leader in the healthcare field and by 1910 (when Robert died) the company had already introduced revolutionary surgical dressings, established a bacteriological laboratory and published the book “Modern Methods of Antiseptic Wound Treatment.” They were able to grow very quickly as a result of acquiring established companies and introducing new products. J&J expanded internationally starting with Canada in 1919 and then Great Britain in 1924. By 1983, J&J was one of the world’s most successful health care companies with their product lines consisting of consumer products (baby care, surgical dressings, first aid, nonprescription drugs), professional products (surgical dressings, sutures, diagnostic products), pharmaceutical prescriptions and industrial products (nonwoven fabrics, edible sausage casings). The consumer products group brought in the largest percentage of sales (43%) while the industrial products brought in much less (4.1%). J&J’s competitors - Bristol-Meyers, Procter & Gamble and Kimberly-Clark to name a few, were unable to keep up with J&J’s continual introduction of new products which allowed J&J to be #1. In 1982, J&J’s sales totaled $5.8 billion with a net earnings after taxes of $523 million. Johnson & Johnson valued a family-like atmosphere and this is what shaped the
Philosophy & Culture
Case Analysis
Introduction: Johnson & Johnson (J&J) was founded 121 years ago based on the need for sterile medical supplies to treat patient’s wounds. Post-operative mortality rates were a grim 90% and after attending a seminar on “antisepsis” Robert Wood Johnson, an apothecary, saw this as an opportunity to start a much needed company. With $100,000 in capital and the help of his brothers, James and Edward, they established Johnson & Johnson. Their prospect with J&J was “to manufacture and sell medical, pharmaceutical, surgical and antiseptic specialties and analgesic goods.” Johnson & Johnson quickly became a leader in the healthcare field and by 1910 (when Robert died) the company had already introduced revolutionary surgical dressings, established a bacteriological laboratory and published the book “Modern Methods of Antiseptic Wound Treatment.” They were able to grow very quickly as a result of acquiring established companies and introducing new products. J&J expanded internationally starting with Canada in 1919 and then Great Britain in 1924. By 1983, J&J was one of the world’s most successful health care companies with their product lines consisting of consumer products (baby care, surgical dressings, first aid, nonprescription drugs), professional products (surgical dressings, sutures, diagnostic products), pharmaceutical prescriptions and industrial products (nonwoven fabrics, edible sausage casings). The consumer products group brought in the largest percentage of sales (43%) while the industrial products brought in much less (4.1%). J&J’s competitors - Bristol-Meyers, Procter & Gamble and Kimberly-Clark to name a few, were unable to keep up with J&J’s continual introduction of new products which allowed J&J to be #1. In 1982, J&J’s sales totaled $5.8 billion with a net earnings after taxes of $523 million. Johnson & Johnson valued a family-like atmosphere and this is what shaped the