The innovative ideas, along with the effective marketing and managerial strategies at Johnson & Johnson have made the company thrive for over a century. The products, services, and ideas of J&J have touched the lives of billions of people around the globe. In addition, the consistent approach to managing the Business, and the character of employees, has given Johnson & Johnson the opportunity to enjoy success in an extremely competitive pharmaceutical industry. Some of the strategies that are used at J&J include, continually improving product quality and speed of creation, controlling factors of production, expanding your market, doing things differently, and having a well focused goal.
• Continually Improving Product Quality and Speed of Creation
To make sure that it is successful, J&J has put together a system where the company could keep improving the quality of products, as well as other services that they offer. “Johnson & Johnson’s establishment of a bacteriological laboratory in 1891 enabled it to be on top of the competition in product quality and creation” (J&J Business Strategies). It’s extremely important to be prompt on the creation and introduction of a product, because as a company, it crucial that products hit the market earlier than the competition. Product quality is also vital to the success of the particular product and for the reputation of the company, because it could potentially give the company a competitive advantage over its rivals. “Achieving superior quality and innovation is integral to achieving superior responsiveness to customers”(Hill and Jones P89).
• Controlling Factors of Production
If sources of raw materials are not controlled by a business, it could potentially threaten the well being of a company. For example, the competitors within the industry could purchase the majority of supplies from your source and this could eventually raise costs and slow down production. To prevent such from happening, “Johnson & Johnson bought over Chicopee, its big source for textile materials, which is a major raw material it uses for production” (J&J Business Strategies).
• Expanding Your Market
By expanding its market, J&J was able to gain global recognition while gaining market share internationally. Even though it may have been difficult to expand globally at the time due to high tariffs and barriers amongst countries, it was an important move for J&J to make, because it enabled the company to become what they are today.
• Doing Things Differently
Being innovative and doing things differently could make a company stand out amongst its competitors. Differentiation is key for an organization to gain market share from competitors, because customers will then attribute more utility to its products. To stand out in the industry, a company needs to do almost everything differently than its competitors.
• Having a Well Focused Goal
Having a good mission statement along with well defined objectives could...