The Profile of Johnson and Johnson Company

The Johnson and Johnson company was formed in 1886, by brothers James Johnson and Edward Johnson. However, lack of resources and capital was a constant struggle for the company. Together they requested the help and support of their brother a doctor and medicine expert. Robert Johnson brought in the much needed expertise and capital to a company that was already failing.

 In 1887, Robert established a partnership with Dr. Fred Kilmer, a lifelong friend and medical inventor. Kilmer began by introducing the much needed sterilized bandages. Train, boat and war injuries were on the rise and Johnson and Johnson was the only company producing sterilized bandages that seemed to speed up the healing of wounds. Additionally, the company also produced medical manuals and guides on how to treat some injuries commonly incurred. In 1890 after they received a series of complaints about skin ailments and irritation that arose from using medicated plaster, Johnson and Johnson began inventing talc powder that could be included in plasters.

 In the 1920’s the company diversified to the production of consumer goods such as soaps and lotions. In retrospect, a new division was created for surgical tools; in 1941 this division was transformed and renamed Ethicon. In 1976, experts on the growth of the company market targets identified a fast rising and uncatered for market. This was the women population sanitation. In the 1980’s Johnson and Johnson began producing women sanitation and toiletry products. Shockingly combined with the sales from the baby department this became the fastest growing department transforming Johnson and Johnson to a household name all over the world not just in America.In 1944, Johnson and Johnson went public issuing its stock for sale to public and private investors. The income resulting from the sale of stock succeeded in catapulting Johnson and Johnson to the second largest health care provider in the country.

Present history

In the past four years Johnson and Johnson has taken keen interest in study of a cure for schizophrenic and behavioral conditions. The company hopes to be pioneers in the discovery of decisive and permanent therapy and drugs for the treatment of these diseases.

During the 68th academic conference on dermatology, Johnson and Johnson unveiled a new technology for treatment of skin diseases. The technology is known as the CYTOMIMIC. The CYTOMIMIC works by copying the body’s natural electricity to help reproduce or rejuvenate skin. The technology repairs sagging and aging skin, replacing it with healthier fresher skin.

The company has also moved to invest in cosmetic surgery. This has been done through the acquisition of the breast implant specialist company, MNT. The acquisition provided Johnson and Johnson with a new experience and with a ready market for the Johnson and Johnson cosmetic products including the wrinkle remover.

Across the American borders, April 2009 saw Johnson and Johnson win a patent to provide Sweden with the premature ejaculation pills known as Priligy. However the drug did not meet the FDA approval in America. The approval in Sweden was a great win quoted in the reapplication for FDA approval.

Above all else perhaps the biggest achievement in recent years for Johnson and Johnson has been the development and approval of Cormfyde, a drug used to treat epilepsy. The biggest advantage has been the ability of the drug to subdue epileptic symptoms even under strenuous and stressful circumstances. Whereas other drugs in the market may work for some while but fail in some stressful situations, Cormfyde has withstood much stress and strain, giving the patients the ability to continue leading their normal lives.

Johnson And Johnson Company Products

Medical Products

The medical devices and products of Johnson and Johnson, allow doctors and other medical personnel to diagnose and treat chronic conditions successfully.Depuy products: These are products designed for the orthopedic medical issues. The milestones included in these departments have been creation of the first replacement hip, and first mobile sensitive knee. The products produced address reconstruction of damaged joints, treatment of soft tissue sport injuries including cartilage repair for damaged knees. 

Advanced sterilization products: the company has been a leading and unequaled innovator and developer of sterilizing equipment and products. Such products include Cidex OPA solution, ENZOL Enzymatic detergent and CIDEX PLUS 28 day solution used for tuberculosis patients’ environments. Johnson and Johnson have also been key in developing sterilizing systems for doctors and medical use. This include: Sterrad 100NX, Sterrard NX and Sterrard 50. the system ensures rapid and immediate sterilization of products and equipment that may be heat sensitive in the surgery rooms.

 Ethicon products:  are renowned all over the world for their products utilized in wound closure and cardiovascular surgery. Ethicon products include sutures for different surgical wound requirements. Adhesives, surgical mesh and drains. The most renowned of these products is dermond topical skin adhesive, which is water proof, and strong allowing patients to wash and shower even after surgery.

Beauty products

The company is also renowned for the beauty products. In the early 40’s Johnson beauty products were reserved for the high class in society. today they are available to all who needs them.

Hand and body care products: the company prides itself in the production of a number of cleansers and lotions. These include 24hour moisturizer, hand cream, dreamy skin (adapted for night time conditions), holiday skin (with sunscreen). There are also bathing and shower gels available from the company such as Johnson’s dreamy skin bath gel and Johnson’s be fresh shower gel.

Face care products: include Johnson face wipes, facial cleanser and moisturizer, Johnson face cream and Johnson lip care. The results of using these products often provide permanent cleansing solutions and facial skin care.

Baby products

The company has a long history of providing consumers with gentle and child friendly baby care products. When it comes to baby care, Johnson has established itself as an expert.

Bath products: Johnson has baby bath soaps and gels such as the head to toe gel, Johnson moisture care, shampoo and conditioner and Johnson bar. The most selling quality of these products is the “no tear”. Through Johnson innovation, the baby care products do not sting when mistakenly used in a child’s eyes.

Baby powders and lotions: used for the skin care of babies are very common. Johnson’s pure baby powder, calming lavender and chamomile powder are famed for preventing and reducing the effects of diaper rush.

Gift and travel sets: this are sets of Johnson baby products that mothers may require when traveling. Consumers have also transformed the traveling kits to gist sets for showers and new mothers. The sets are packaged in different manner and the consumer has a choice of the set they can easily afford. The sets come with their own bags so there is no need for packing them again.

Women Sanitary Products

In the early 80’s Johnson ventured into the production of sanitary products for women. Since then they have produced products such as: carefree and stay free sanitary towels, Johnson’s carefree tampons and Johnson Stayfree and carefree panty liners. All these products have revolutionized the world of women’s sanitary requirements. Before the introduction of the sanitary department for women, they had to contend with sanitary belts, using clothes and rugs or adhesive pads that caused health complications and were uncomfortable for the women.

Key Dates In Johnson And Johnson Company History

1886- 1900:  1886, the Johnson company was formed in new jersey. 1887 Johnson and Johnson were created from the original company. 1893. the company introduced Johnson baby powder.

1900- 1950: in 1921, the company began producing adhesives on a large scale. 1924, the company went international opening a branch in the UK.1944, the company becomes public listed in the New York stock exchange.

1950-2000: 1960 through the acquisition of McNeil labs, the company is able to introduce Tylenol an over the counter pediatric pain reliever. 1982, unknown individuals tamper with Tylenol killing 7 people. The company recalls all its products for further investigation. 1988, the company revolutionizes contact lenses by introducing disposable contacts. 1998, after acquiring Depuy, the entire company is restructured top suit the current economic and political climate.

Competitors Of Johnson And Johnson

Abbot labs are a company that specializes in the production of pharmaceutical products for sanitization and medical care. The company has recently been involved in some ground breaking innovations that include treatment of neurological disorders. The drug Depakaote developed by Abbort for the treatment of epilepsy is the main competitor for Johnson’s drugs. Whereas previously Johnson had been credited for the monopoly in the treatment of neurological disorders, the availability of Deparkote has challenged Johnson’s monopoly. Not only are the drugs produced by Abbort almost similar in structure to Johnson drugs, they are also much cheaper. Doctors and public hospitals especially have begun relying more and more on the customer and client friendly Abbort drugs.

With their penetration into the neurological disease market, the Abbot labs began inching their way into a market that had previously been monopolized by Johnson and Johnson. The health care department of Johnson and Johnson has since been at loggerheads with the Abbort. There have been rumors of compromised competition especially where Abbort has taken the Johnson employees and the other way round in hopes of interrupting the other company’s productions and operations.

Recently Abbort has taken the competition even further by introducing baby products into the market. A new department that has been introduced through aggressive advertising is providing mothers with the same advantages as Johnson but at lower prices. With recent tough economic times, Johnson has begun loosing its faithful customers to the cheaper Abbort products. Introduction of milk and food formulas to their array of baby products has made Abbort even more famous and exceeded the expectations of the former Johnson customers.

Eli Lilly and company: has also offered competition to Johnson in the neurological health care department. Its greatest achievement has been the introduction of Zyprexa used in the treatment of schizophrenic and bipolar diseases, which has been a goal for Johnson company. Additionally, the company has also introduced a women’s health care department that has offered serious competition for Johnson’s women’s health. What is most important is that the drugs are produced and distributed at much lower costs than other medications available in the market.

Norvatis has developed a department that specializes in consumer health at cheap prices. The production of herbal based medication and its breakthroughs in innovations for diagnosing and managing cancer have been the biggest competitor for Johnson. Whereas the Johnson company has not succeeded in developing proper medication and management for cancer treatment, Norvatis has become an expert in the management of terminal illness.

Additionally, Norvatis has developed more customer friendly contact lenses provided at cheaper prices to the consumers. The result is that the contacts are slowly inching their way into the hearts of loyal Johnson customers. There have been developments by this company in producing sterilizing equipment that again has been a specialty of the Johnson company.

Target Markets For Johnson And Johnson Company

The largest market for Johnson is made up of health care providers. Doctors, physicians, nurses and the medical personnel are the targets used to promote the use of sterilizing equipment from Johnson in their theaters; they are also the ones who prescribe the drugs produced by the company. Therefore Johnson advertisements and marketing strategies are first and foremost targeting the health care providers.

The second market for Johnson comes from the women in any population. Johnson beauty products are structured to attract women of all ages, but their most important market are the new mothers. Johnson has a wide range of baby care products structured to attract new mothers.  It is believed that Johnson baby products can sustain the entire company even at times of loss for all other departments.

Finally Johnson also targets sports organizations that can benefit from the sports department products such as pain relievers and balms.

Financial performance of the company

During the last quarter of the year 2009, the Johnson income fell by 4% to 3 billion compared to the previous year profits of 3.5 billion. This was credited to a fall in sales from the previous year’s 16.5 billion to the present performance of 15.3 billion. The decline was attributed to the failure to improve consumer revenue attraction. During the period of global recession, the company underwent a serious loss in sales, declining the sales by 8% in a period of three months.

The company also undertook some major reconstruction work to its headquarters and some subsidiaries. The result was an $850million cost that declined the profits even further. However, this was a better performance that the financial analysts had predicted. The analysts had foreseen a 5% decrease in profits bringing this to a 10% loss. The company was predicting a 6% growth in income that has since not been realized. The losses accruing to the company are instead getting higher and higher. Although the analysts are giving hope to poor performers in the previous 2010 quarter, Johnson seems to be facing tough competition from supplementary products especially in the high income earning pharmaceuticals department. Without extreme marketing strategies and significant reduction in the prices of its products Johnson faces another dismal financial quarter.

Since its introduction as a public company, Johnson has experienced high profits and incomes. However recent completion and destruction of the monopoly enjoyed by the company has brought the performance of the company to its lowest since the 1950’s. this has brought the stock options to even lower performance of less than $65 in average compared to the previous year’s high performance of almost $90 per share. It is important for the executives and board members of Johnson to analyze the situation and produce a better year, in the current political and economic climate. Perhaps the most important step for Johnson would be to consider the reduction in common product prices especially drugs and beauty products. The company should also consider developing their generic drugs which are often cheaper than the originals.


Johnson and Johnson, is the best example for a small company that grew into the biggest success in America and the world. Business analysts predict that even with competition Johnson and Johnson will be the biggest provider of health care in America and the world as a whole. Consumers identify with the brand name of the Johnson company. To many people a mention of the company brings memories of childhood. The company has succeeded in establishing itself as a household name.

The loyalty base of Johnson consumers is extremely high, therefore even in future generations Johnson and Johnson will continue to be a respected company in health care provisions. The company may face some competition, but its size and experience in the market almost always guarantee that it will come out on top of the competition. Johnson and Johnson is a company to be emulated by others wishing to venture to the health care promotion sector.


Corporate Information (2010). Johnson And Johnson Stock Quote And Company Profile. Retrieved From The Website:

Johnson And Johnson. About Johnson And Johnson. Retrieved 22nd April 2010 From The Website:

Johnson And Johnson Company. Our Company And History. Retrieved 22nd April 2010 From The Johnson Website

McFarland Keith (2009). The Breakthrough Company: How Everyday Companies Become Extraordinary Performers. Barnes And Noble Publishers.

Qontro Business Profiles. Eli Lilly And Company Business Profile. Qontro Business


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