Johnson & Johnson Internal and External Analysis
Paper 1
EXTERAL ANALYSIS
Macroenvironmental Analysis:
• Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.
• Technological: Profitability is determined mainly by the ability to discover new drugs. Technology is at the forefront of the pharmaceutical industry because advances allow for expanded research and development which in turn allows for companies to create new powerful drug chemistries.
• Legal/Political: According to a US senator, legislation has been introduced that would require public disclosure of grants made to groups and physicians. These grants can include free trips to exotic locations to educational conferences; some experts say these grants can improperly influence medical care. The presidential election and the governmental decisions made about health care overall may also influence consumer ability to purchase products.
• Social/Cultural: Thirty-two percent of Americans have an unfavorable opinion of Pharmaceutical industry. Most of the adverse opinions come from the perceptions of profiteering. Other people also have concerns that companies are unethical in the research stage and don’t care about the long term effects on the experimental subject.
• Demographics: With the baby boomers getting older, a higher percentage of the population is now 65 or older and are needed more medical care and prescription drugs.
Market Analysis
Supplier: Labor, Drug distributors
Customers: Mass Consumers
Substitutes: herbal drugs, alternative therapies, therapeutic substitutes
Rivalries of Existing Companies: price, features, innovation, effectiveness, availability, brand reputation
Major Competitors: Merck, Novartis, Proctor & Gamble
Conclusion: In the pharmaceutical
EXTERAL ANALYSIS
Macroenvironmental Analysis:
• Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.
• Technological: Profitability is determined mainly by the ability to discover new drugs. Technology is at the forefront of the pharmaceutical industry because advances allow for expanded research and development which in turn allows for companies to create new powerful drug chemistries.
• Legal/Political: According to a US senator, legislation has been introduced that would require public disclosure of grants made to groups and physicians. These grants can include free trips to exotic locations to educational conferences; some experts say these grants can improperly influence medical care. The presidential election and the governmental decisions made about health care overall may also influence consumer ability to purchase products.
• Social/Cultural: Thirty-two percent of Americans have an unfavorable opinion of Pharmaceutical industry. Most of the adverse opinions come from the perceptions of profiteering. Other people also have concerns that companies are unethical in the research stage and don’t care about the long term effects on the experimental subject.
• Demographics: With the baby boomers getting older, a higher percentage of the population is now 65 or older and are needed more medical care and prescription drugs.
Market Analysis
Supplier: Labor, Drug distributors
Customers: Mass Consumers
Substitutes: herbal drugs, alternative therapies, therapeutic substitutes
Rivalries of Existing Companies: price, features, innovation, effectiveness, availability, brand reputation
Major Competitors: Merck, Novartis, Proctor & Gamble
Conclusion: In the pharmaceutical