Johnson & Johnson is the world's most comprehensive and broadly based health care product manufacturer with more than 200 operating companies in 57 countries (Our company, 2004). Among its many strengths are its position in the United States as a company with the "best corporate reputation (General information, 2004). With worldwide sales of $41.9 billion and net earnings of $7.2 billion in 2003, the firm has generated dividends for shareholders every quarter since 1944 and dividends have been raised each year for 42 consecutive years (General information, 2004). Johnson & Johnson, according to Hamer (2004), enjoys an excellent research and development pipeline, a strong position in the generic pharmaceutical sector, and the firm has successfully employed a corporate strategy of differentiation to distinguish itself from its competitors. Innovative products and diversification through company acquisitions alongside positive relationships with suppliers and distributors also add to the strengths of this firm (Hamer, 2004). Hamer (2004) also noted that Johnson & Johnson enjoys a large research and development budget which promotes innovation.
Among the limited number of weaknesses impacting upon Johnson & Johnson, it is necessary to list the fact 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 significantly lower price (Hamer, 2004). In the aftermath of the infamous Tylenol tampering scandal, Johnson & Johnson found itself faced with the necessity of rebuilding its image. Though the firm has succeeded in re-establishing itself as a trustworthy and steady company, it has nevertheless needed to devote a great deal of time and energy to this process which may have negatively affected its ability to capitalize upon sales of newer products. Hamer (2004) states that a l
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