Johnson & Johnson Business Strategies

By | September 14, 10

Johnson & Johnson Business Strategies

Surviving in business for more than 120 years, with most of those years as market leader in many product categories means that the ideas and strategies that Johnson & Johnson employed worked, and are worth copying. Here are strategies, which took J & J to the top of its industry, and which can also take your business to greater height.

Providing Solution To Great Challenge

Great businesses result because they find and offer solution to big problem confronting a large number of people.

Right from the beginning, Johnson & Johnson was positioned to discover solution to the healthcare needs of many starting with the production of surgical dressings in 1886.

Continually Improving Product Quality And Speed Of Creation

To ensure the continual success of your business, you need to set up a system that will enable you to keep improving on the quality of your products or services, as well as on the speed at which you develop and launch new products into the market.

Johnson & Johnson’s establishment of a bacteriological laboratory in 1891 enabled it to be on top of the competition in product quality and creation.

Controlling Factors Of Production

Your business survival may be threatened if you don’t have control over the sources of your raw materials or inputs for your production or operation. For instance, competitors could buy off all supplies from your source for raw materials and upset use your production.

To prevent such from happening to it, Johnson & Johnson bought over Chicopee, its big source for textile materials, which is a major raw material it uses for production.

Expanding Your Market

You need to expand your market and increase sale. Other regions or nations might be in dire need of the solution you offer, but if you don’t expand to them, you may never know how much sales you are leaving on the table.

Johnson & Johnson realized the value of expanding internationally back in 1919 when it set up its fist international affiliate in Canada, followed by the establishment of another in Great Britain in 1924.

Doing Things Differently

To stand out in the crowd and achieve uncommon results, you need to do things differently by trying out new ideas, methods or strategies that have not been used before.

Johnson & Johnson was able to effectively challenge Kimberly-Clark in the feminine product category with its introduction of Carefree and Stayfree sanitary napkins into the market because it went against the norm by advertising a woman hygiene product loudly, as it used television to advertise Carefree and Stayfree.

Having A Well Focused Goal

Having a written and well defined goal for your business, which all employees know, directs everyone’s energy, and mindset to achieving the goal.

No doubt, J & J’s goals, “Continuously improving customer satisfaction, cost efficiency and speed of bringing new products to market,” which was written, read, and known by its employees, have helped it to achieve the monumental success it has attained over the decades.

Read Johnson & Johnson’s Success Story here.



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