A Transition from Booming to Slower Economy Growth

Hamer (2004) also noted that Johnson & Johnson enjoys a big search and development budget which promotes innovation.

Among the limited range of weaknesses impacting upon Johnson & Johnson, it is needed to list the truth that drug patents on major over-the-counter and prescription drugs are rapidly expiring. This allows generic drug companies to sell copycat drugs at a a lot lower price (Hamer, 2004). From the aftermath on the infamous Tylenol tampering scandal, Johnson & Johnson found itself faced of the necessity of rebuilding its image. Even though the corporation has succeeded in re-establishing itself like a honest and steady company, it has however required to devote much of time and energy to this process which may perhaps have negatively affected its potential to capitalize.

Opportunities abound for Johnson & Johnson. First, entrance into the pharmaceutical market is difficult, and even though competition among pharmaceutical organizations is high, Johnson & Johnson includes a number of crucial patentable goods in its research and development pipeline. Expiring patents on brand name drugs have led to an increase in generic drug sales and Johnson & Johnson can capitalize upon this opportunity as well. Under the new Medicare Prescription Drug Improvement and Modernization Act, expanded Medicare prescription drug coverage will cause short-term gains for your major drug marketplace because of the expanded customer base that will be created (Hamer, 2004). Conversely, over the lengthy term, increased federal government involvement could bring about the threat or implementation of price controls.

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.