Johnson & Johnson (J&J) is a major American company based in New Brunswick, New Jersey, specializing in pharmaceuticals, biotechnology, and medical technology. It is publicly traded on the New York Stock Exchange and is part of the Dow Jones Industrial Average. In 2023, J&J was ranked 40th on the Fortune 500 list and also made it onto the Forbes Global 2000 list.
Founded in 1886 by brothers Robert, James, and Edward Johnson, the company initially focused on selling sterile surgical dressings. In 2023, J&J spun off its consumer health division, creating a new company called Kenvue, allowing J&J to concentrate solely on pharmaceuticals and medical devices.
J&J is recognized as one of the world’s most valuable companies and holds a AAA credit rating, making it one of only two U.S. firms with this distinction.
The company operates in three main areas: Consumer Health Products, Medical Devices, and Pharmaceuticals, each catering to different healthcare needs.
- Consumer Health Products: This includes well-known brands like Johnson’s Baby, Neutrogena, and Listerine, covering baby care, skincare, wound care, and over-the-counter medicines.
- Pharmaceuticals: J&J develops treatments in fields such as immunology, oncology, neuroscience, and infectious diseases, with key products like Remicade, Stelara, and Imbruvica.
- Medical Devices: This segment focuses on surgical instruments, hip and knee replacements, and vision care products, including Acuvue contact lenses.
BCG Matrix of Johnson and Johnson
Cash Cows in BCG Matrix of Johnson and Johnson
- Remicade: This medication is a strong performer for J&J, especially for treating autoimmune diseases. It has a good market share, but growth is slowing because the market is getting crowded with competitors.
- Neutrogena: A well-known skincare brand, Neutrogena has a solid presence in the market. While it does well, it faces tough competition from other premium brands, which limits its growth.
- Acuvue: As a leading brand in contact lenses, Acuvue has a strong market share. However, its growth is moderate since the market is already quite full.
- Listerine: This mouthwash is a top choice among consumers and maintains a strong market position. Although it continues to bring in a steady income, there aren’t many opportunities for further growth.
Stars in Johnson and Johnson BCG Matrix
- Stelara: This drug is gaining popularity and has been growing quickly. It is effective for multiple conditions and is being widely accepted by doctors, making its future look bright.
- Imbruvica: Known for treating various cancers, Imbruvica has quickly gained market share and shows strong potential for growth as it expands its use in different cancer treatments.
Question Marks in Johnson and Johnson BCG Matrix
Question Marks (or Problem Child) in the BCG matrix are products that have a low market share but exist in a rapidly growing market. Although Imbruvica is currently ranked as a star, it can be treated as a question mark because the oncology department in J&Js still holds a lot of uncertainty.
Dogs in Johnson and Johnson BCG Matrix
Johnson’s Baby: While it has a long-standing reputation in baby care, Johnson’s Baby is struggling against newer brands. Its market share and growth are both limited. Apart from that, wound care products are gradually becoming dogs in the J&Js BCG matrix.
Also, read about the BCG Matrix of Cadbury.