Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Strategic Mgmt Essay

Open Document

Below is an essay on "Strategic Mgmt" from Anti Essays, your source for research papers, essays, and term paper examples.

Date: 23 February 2014 To: Mr. Alex Gorsky, CEO Johnson and Johnson Corporation From: RE: Interim Strategy Analysis

Johnson and Johnson is involved in the health care industry through three distinct business segments: consumer, medical, and pharmaceutical. Consumers are becoming more concerned with a healthy lifestyle. Health-care spending typically accounts for more than 10% of GDP in developed nations, and part of the increase in health care spending is due to aging population. The influx of senior citizens will create huge demands throughout all realms of medical care. Johnson and Johnson can expect to see increased sales across all three of its segments in the coming decades, and must plan production accordingly to be able to meet the needs of this huge generation as they enter their most medically-dependent years. Please see Exhibit 1 for additional information. Johnson and Johnson’s main competitors are the Novartis AG, Pfizer Inc., and Covidien plc. Exhibit 2 shows the relative size of these companies by the most recent annual revenue numbers. Johnson and Johnson enjoys an enviable broader reach and customer base due to its brand loyalty and brand image. The level of competition in the health care industry is fairly high as shown in Exhibit 3. The threat of new entrants is not of particular concern to Johnson and Johnson. The world’s top pharmaceutical companies have extensive manufacturing capabilities, distribution systems, and economies of scale that have been built up over decades and would be virtually impossible for a new entrant to replicate. The threat of substitutes is much more problematic than that of new entrants, especially in the pharmaceutical segment. The Food and Drug Administration (FDA) requires that generic drugs be bioequivalent to their brand name counterparts, making them serious substitutes. Once a patent expires, generic manufacturers are quick to reverse-engineer the formerly proprietary drugs and sell generic versions at a...

Show More


Citations

MLA Citation

"Strategic Mgmt". Anti Essays. 21 Nov. 2017

<http://www.antiessays.com/free-essays/Strategic-Mgmt-603600.html>

APA Citation

Strategic Mgmt. Anti Essays. Retrieved November 21, 2017, from the World Wide Web: http://www.antiessays.com/free-essays/Strategic-Mgmt-603600.html