Johnson & Johnson SWOT Analysis

Subject: Company Analysis
Pages: 1
Words: 325
Reading time:
2 min
Study level: Bachelor

Case Study

The SWOT analysis is one of the most effective tools to determine the internal and external environment of the organization. The SWOT framework stands for strengths, weaknesses, opportunities, and threats (Benzaghta et al., 2021). The first factor identifies the most advantageous internal characteristics of the organization (Benzaghta et al., 2021). In the case of J&J, the primary strengths include high revenue, global presence, and a large variety of products, which ensure the dominant position of the organization in the market. Furthermore, the company might utilize its strengths to its advantage by investing more funding into research and merging with other companies on favorable terms. The second factor – weaknesses – concerns internal factors that delay the development of the organization (Benzaghta et al., 2021).

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According to the current case study, the core weaknesses are the damaged reputation of certain products, the flawed manufacturing framework, and lack of supervision. These are internal factors that caused the tragedy of Tylenol poisoning; therefore, the company needs to ensure such an emergency does not occur again.

Consequently, the SWOT analysis also addresses the opportunities and threats of the organization. The former refers to external factors that the company might take advantage of (Benzaghta et al., 2021). For instance, according to the current case study, J&J utilized the tragedy of Tylenol poisoning to its advantage and was able to return approximately 80% of the product’s market share. Ultimately, a similar action is still considered an opportunity, and J&J might repeat the strategy to regain the trust of the customers. Lastly, threats are external factors that delay the development of the organization (Benzaghta et al., 2021).

However, unlike weaknesses, the company has little control over threats and needs to make its best efforts to mitigate any negative consequences. Concerning J&J, the primary threats include lawsuits based on pharmaceutical incidents and dense competition. Therefore, Johnson & Johnson should necessarily address these issues to maintain a favorable position in the market.

Reference

Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 54-72.