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Strategies of Johnson & Johnson & IBM

ales or marketing per se. Buyers and suppliers alike have substantial bargaining power in this sector.

Additionally, Elling, et al (2002) maintain that a flurry of mergers and acquisitions û a total of 18 major deals between 1989 and 2002 û introduced other concerns, notably confusion among doctors about which companies were marketing which drug. The differences between products have become blurrier as more and more companies attempt to piggyback on the success of their competitor's drugs by marketing similar drugs. Finally, Elling, et al (2002) claim that the introduction of low-cost generics has undercut the sales and marketing efforts and the profitability of some of the major pharmaceuticals and their sales staff û which speaks to the issue of substitute products.

2.3 The generic strategy followed by the Johnson & Johnson pharmaceutical segment is product differentiation (Hamer, 2003). Differentiation occurs when the customer perceives that the company offers something unique. Johnson & Johnson has found an offering that is unique in the industry by being a historically reliable and safe company. The firm also enjoys what Hamer (2003) called a good balance between products in various stages of their life cycle. In its generic strategy the firm focuses on R &D and moving new prescription drugs to market to offset losses which occur when patients expire.

2.4 The business-level or grand strategy used by Johnson & Johnson consists of being first-to-market with innovative drugs targeting major medical conditions. A strong focus on cardiovascular medications, cancer medications, and medications targeting migraine, premature ejaculation, chronic pain and hyperactivity is also present. Maintaining low prices is part of this grand business level strategy.

2.5 Remote threats identified via STEP analysis also impact upon the firm. Sociocultural factors such a the aging of the Baby Boomer generation provide opport...

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Strategies of Johnson & Johnson & IBM. (1969, December 31). In LotsofEssays.com. Retrieved 05:31, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1703226.html