Johnson & Johnson External Factors
MG 496
Case #2
Johnson & Johnson
(Case #21)
External Factors Analysis
• Economic I. Economic crisis directly affected R&D budget (2009) threat II. Currency rate fluctuations III. Change in consumer behaviors and spending patterns of health care products and services due to economic downfall. threat • Political/ Legal I. Government legislation relating to sales, promotions, and reimbursement II. Patent expirations (Patent Cliffs); could decrease demand for a firms branded products because generic drugs would be available. threat towards J&J opportunity III. Cost reduction programs • Technological I. Tylenol’s online advertising campaigns with online advertisers such as Yahoo, Google, and MSN opportunity an effective advertising campaign could increase revenues. II. Life Scan ( Ultra glucose machines) III. Research & Development • Social/ Demographic I. Ongoing developments into drugs geared to the treatments of HIV and cancer II. The purchase of 18.4% in Elan Corp. (This purchase gave J&J access to Bapineuzumab, a late-state in development potential Alzheimer drug.) III. Relationships with professionals, patients, and civil groups • Substitutes I. Generic drugs ( ANDAs, Abbreviated New Drug Applications) threat II. Home remedies III. • Buyers I. Hospitals and other health care facilities opportunity II. Retailers ( Pharmacies and major stores with pharmacies within them) opportunity III. Wholesalers opportunity
• Suppliers I. Pharmaceuticals
• Threat of Entry I. The threat of the smaller competitors becoming large enough to compete with J&J and their 3 big competitors. threat
• Intense of Rivalry I. Abbott Laboratories ( Pharmaceutical, Diagnostic, Nutritional and Vascular products) threat II. Merk & Co. Inc. (creator of the world’s 1st anti cancer vaccine) threat; because both J&J and Merk & Co. are researching cancer medications.
Case #2
Johnson & Johnson
(Case #21)
External Factors Analysis
• Economic I. Economic crisis directly affected R&D budget (2009) threat II. Currency rate fluctuations III. Change in consumer behaviors and spending patterns of health care products and services due to economic downfall. threat • Political/ Legal I. Government legislation relating to sales, promotions, and reimbursement II. Patent expirations (Patent Cliffs); could decrease demand for a firms branded products because generic drugs would be available. threat towards J&J opportunity III. Cost reduction programs • Technological I. Tylenol’s online advertising campaigns with online advertisers such as Yahoo, Google, and MSN opportunity an effective advertising campaign could increase revenues. II. Life Scan ( Ultra glucose machines) III. Research & Development • Social/ Demographic I. Ongoing developments into drugs geared to the treatments of HIV and cancer II. The purchase of 18.4% in Elan Corp. (This purchase gave J&J access to Bapineuzumab, a late-state in development potential Alzheimer drug.) III. Relationships with professionals, patients, and civil groups • Substitutes I. Generic drugs ( ANDAs, Abbreviated New Drug Applications) threat II. Home remedies III. • Buyers I. Hospitals and other health care facilities opportunity II. Retailers ( Pharmacies and major stores with pharmacies within them) opportunity III. Wholesalers opportunity
• Suppliers I. Pharmaceuticals
• Threat of Entry I. The threat of the smaller competitors becoming large enough to compete with J&J and their 3 big competitors. threat
• Intense of Rivalry I. Abbott Laboratories ( Pharmaceutical, Diagnostic, Nutritional and Vascular products) threat II. Merk & Co. Inc. (creator of the world’s 1st anti cancer vaccine) threat; because both J&J and Merk & Co. are researching cancer medications.