Friday, September 13, 2019

Johnson & Johnson Essay Example | Topics and Well Written Essays - 1000 words

Johnson & Johnson - Essay Example To do so the details like the SIC code and the industry code have been discussed. Also details of the competitors have been discussed. A detailed analysis of the financial ratios and a financial analysis have been made. Finally based on the analysis, recommendations have been drawn out for the company. b) Benchmarks: The various benchmarks that need to be considered are: Bonds and other fixed income investment, The NASDAQ Stock market, Technology Stocks, International Stocks, Overall market, Japanese Market, and the Mortgage rates. The interest rate is the current interest rate that is offered. d) External factors: Events across the world and the economic conditions are two very strong factors that affect the working of Johnson & Johnson. Other factors like the cost of things in the country i.e. the inflation levels of the country also plays a very important role in the decision making of the company. The company faces major competition from Eli Lily, Novartis and Procter & Gamble. The market shares of these companies, based on their revenues are illustrated below to give a clear picture of the company’s position in the market and its customer base. It is evident that Johnson and Johnson has a considerable 30% market share; however it is imperative to note that Procter and Gamble takes the lead with over 40% of the market. Though Novartis has comparatively lesser share of the market, Eli Lily is continuously shown steady growth over these years and has control over 20% of the market. The market share also indicates the potential of the industry and that there is a lot of opportunities for Johnson and Johnson to exploit in terms of revenue and customer base. Another major opportunity for Johnson and Johnson is to enter into the segment of medical devices and diagnostics which will improve its customer base and diversify its activities. b) Products & Services: The products and services of the company are mainly focused on the health industry.

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