1982 Johnson & Johnson Tylenol Crisis

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This is a case study on 1982 Johnson & Johnson Tylenol crisis which includes SWOT analysis of Johnson & Johnson company, parent of McNeil Consumer Products; what happened for Tylenol product in 1982; how Johnson & Johnson reacted to the crisis; how Johnson & Johnson rebuild their brand name and finally what lessons were learned for handling crisis to the corporate world. SWOT Analysis Strength: • In 1960, Johnson & Johnson was the first to introduce aspirin free pain reliever for children and became the most recommended medicine by pediatricians. • Tylenol was the most successful over the counter product in US with over one hundred million users in 1980. • Tylenol was the leading pain killer in the market and accounted for 33% of the market share in 1982. Weakness: • Tylenol medicines are available as capsules in unsealed plastic bottle and enclosed in cardboard. • Johnson & Johnson lacks public relationship with media. Often executives evade the press meeting. They interacted with media only for advertising and marketing. • Despite a global company, Johnson & Johnson doesn’t have a toll free number for customer queries and feedback. Opportunities: • In 1980, Johnson & Johnson started their first operating company in China and Egypt. • Johnson & Johnson expanded their business into new areas of health like vision care. Threats: • Johnson & Johnson is a multinational company operating in South Africa, UK, India, Malaysia, China and Egypt. In addition to the U.S. Any threat related to their product in one country will tarnish the image in other countries too. • Extra-Strength Tylenol is distributed in the form of capsules. Capsules can be easily tampered and contaminated when compared with tablets or

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