Johnson & Johnson: Everyday Biotech in the Home

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The company Johnson & Johnson (NYSE: JNJ) employs approximately 127,000 employees, and with assets is considered the worlds most profitable biotechnology company. The company was founded in New Brunswick, New Jersey in 1886 and was reported to hold $133.41 billion USD in total assets. The company is responsible for a wide array of products including household names like Band-Aid, First-Aid, K-Y, Listerine, and Johnson’s Baby brands.

Strengths in a Broad Product Range

One of the greatest strengths of Johnson & Johnson is their wide product range. With such a diversity of products, the company does not rely on any sole product to generate the majority of their revenue. Just as well, all of their products are followed by a brand-loyalty. People who buy Tylenol for headaches will most likely go right back to buying Tylenol next time around.

Aside from being reputable by name with their strong brands such as “No More Tears” shampoo, Tylenol, Band-Aid, and Visine, Johnson & Johnson has also been known to have a generally wise purchasing plan. For example, the company chose against purchasing Guidant, a company known for their cardiac pacemakers, when Boston Scientific came in with a bid outside of their price range. Such decisions are a display of a strong financial play on the side of Johnson & Johnson, backed up by a knowledgeable staff.

Consistent Production of Household Names

The company also has some weak points, for instance, several of the companies big products are soon to lose their patent protection. Also a weak point, even though Johnson & Johnson has such a vast array of products, most all of them are absolute commodities. For example, there are many adhesive bandages in the world, and therefore Band-Aid will never truly be that unique or have any sort of stranglehold on the adhesive bandage market.

Potential Weaknesses

When speaking of Johnson & Johnson’s weaknesses as a company, it is also appropriate to note the recent discovery in regards to some of their children products containing the cancer-causing chemical formaldehyde. Though it was eventually removed from the products, many parents and consumers were absolutely outraged when they discovered it was even there in the first place. Such an event taking place made the company seem less trustworthy, and very well may have lost some of the brand-loyalty of the consumers.

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