Johnson & Johnson is an investment holding company with interests in health care products. It engages in research and development, manufacture and sale of personal care hygienic products, pharmaceuticals and surgical equipment. J&J prides itself on its decentralized operating structure, with the management teams of its myriad and far-flung operating units having wide latitude to make decisions. Each company belongs to one of J&J’s three broad divisions: The Pharmaceuticals, Medical Devices, and Consumer divisions
Johnson ; Johnson faced many problems in their business. It was already alerting investors that its revenue would drop. Sales of its consumer’s products were slowing as a result of a decrease in the disposable income of its customers. Its pharmaceutical business was being affected by the expiration of patents on some of its best-selling drugs and by the growth of competition from generic drugs. J&J entails very high overhead costs, they have been losing sales on its best-selling products under assault from competitors, sales of its consumer products were slowing as a result of a decrease in the disposable income of its customers, and is getting much harder for J&J to spot smaller firms with promising drugs and to avoid running up against other firms. The company need to develop a new product through already acquired businesses and should minimize the acquisition of new businesses. Johnson & Johnson need to maintain the stability through Innovation of their existing products especially Pharmaceutical and Medical Devices to cope up the changing business environment. The company must create new products through other businesses already acquired because staying ahead of the competition should always be front of mind for existing companies. New products can give a competitive advantage over the competition. R&D must be strengthened. Through this, the company will have a higher chance in succeeding in the global market.