Introduction

The proposal report Johnson and Johnson (J&J), a global American pharmaceutical, medical
devices and consumer packaged goods maker, was founded in 1886, was chosen as the global
business pitch report. In Japan, the company attempts to internationalize its market. It's
essentially a US corporation. With more than 250 subsidiaries worldwide, J&J is a listed
company, listed in the Fortune 500 list and records its stock in the NASDAQ list with goods in
more than 175 countries. In order to achieve customizations of their product, J&J is focused on
making J&J a recognizable customer and branding it as a family mark from America through
Japan, with a variety of goods sold on global markets.
Business model of Johnson & Johnson
Customer Segments
Johnson and Johnson market their products through consumer, wellness and pharmaceutical
markets to a variety of consumers. The three separate business divisions of the Group have
slightly different target markets:

• The Customer division of the Organization markets its goods to the general public,
marketing them from the US to Japan to department stores, supermarket chains and
distributors;
• The Pharmaceutical Category directly sells its prescription drugs to American retailers ,
wholesalers, hospitals and health professionals;
• The Medical Devices division of the Company sells its products from America to Japan
to wholesalers, hospitals and dealers, doctors, auditory and specialist clinics, including
orthopedics, general procedures, cardiovascular disorders and diabetes treatments.
The global client base is Johnson and Johnson. The US, however, is its largest single sector,
comprising just over half the Comp.
Value Propositions
In the following respects, Johnson and Johnson esteem their clients:
 Its brand and business recognition as one of the world's largest and most well-known
businesses with a portfolio of high-profile premium brands;
 the size of their global marketing and distribution scope, with over 250 businesses in 60
countries operating and working together with a global network of distributors and
dealers;
 its innovation and development dedication, with significant support for research and
development to provide up-to - date products and solutions for its customers, and
 Open to customers in all classes and class brackets for the affordability of its goods.
External Environment
Environment cannot be controlled; we must therefore first evaluate the environment and then
define the approach which also subsequently represents the organizational structure.
Political Economy Analysis
A nation's political economy describes the modes of interdependence between political,
economic and legal structures and represents their interaction and effect.
Political systems
The government system in a nation described as a political system that divides 200 and more
world organizations into two dimensions, one that involves collectivism versus individualism
and democracy versus totalitarianism. More technically, individuals in the high-context region,
such as Japan, should be bound together to achieve the popular or collective objectives;
individualism implies that democratic political structures and the free market economies, such as
Americans have freedom of choice.
Economic systems
The government supports open and fair competition between private producers, the members of
governments such as Japan, in the market economy. The government also promotes an open and
equitable competition. The purpose of the command economy is 'the good of society'; state
owned enterprises such as Japan are all enterprises. Japan is the traditional example of the mixed
economy where private and free-market structures are left in some parts of the economy while
others have substantial government ownership and planning.
Legal systems
The knowledge of the various legal systems plays an important part in a company that operates
worldwide. Legal issues help to promote commercial practices so an awareness of various legal
structures around the world in particular in Japan is extremely necessary for foreign business
operators.
International Business Laws
The companies operate in a world in which laws and judicial systems from different
governments and cultures can conflict. A basic understanding of the legal system and also how
business law affects trade in the country itself and in other countries of the company is therefore
required. Its effect on business law encourages the inclusion in its corporate regulations or
operations of standards that tackle these complex and difficult issues between America and
Japan.
Individualism versus Collectivism
In Western countries, individualism and individual success are normal, both positive and
negative. However, individualists focus only on tasks. They cannot, for the sake of collectivism,
establish a long lasting strong relationship with others. Japan is a classical individualist party that
functions as collectivists, as opposed to Asia (i.e. Japan, China).
Competitive Advantages – Poster’s Five Forces
Degree of Rivalry
The mid-high rivalry existed, with less Baby Care rivals, such as California Baby, Easy.
However, Johnson & Johnson dominated both the baby care and economy so that the business
was less rivalry-intensive in Japan. The costs of a competitive advantage and promotions are
relatively high, such as advertisement and rebates; J&J has a history of over hundreds, and strong
picture of social corporate responsibility.
Threat of new entrants
Despite minor barriers to entry into the lights of low installation costs in Japan, the danger of
new entrants should be low. Lafe’s Body Care is an example of a new entrant introducing a new
baby care product line in recent years, with J&J's brand equity comparatively high and
significant impacts in the industry such that many suppliers choose to sign contracts with it
rather than new suppliers benefiting from the increase to the brand of supply companies and
profit-making activities.
Threat of substitutes
Some of Pigeon Corporations' and Drapolene's baby care products are recommended by doctors
(that is to say, babies), but lack of consumer brand recognition and the buying or box of the
goods is not easier for consumers to bring in Japan; Johnson & Johnson baby care products vary
from bough products, whereas are not portable. Threats of replacements should therefore be
minimal.
Power of Buyers
Many alternatives are possible for customers to contribute to the high negotiating power of
customers, in particular for customs who are price sensitive, who prefer high-quality goods with
lower costs in Japanese theory study. J&J's Baby Care products are nevertheless regarded by a
range of loyal customers as important prescription products for infants. All in all, consumers'
negotiating power needs to be bottom-to-center because their safe baby-brand reputation has
transformed the world's consumer mind, also adult women prefer baby products to be their skin
care products.
Power of Suppliers
The material, goods and services that J&J Family of companies manufactures products, supply
offices and other services to customers in Japan are supplied by thousands of suppliers. In terms
of its capacity to achieve its long-term growth goals and add value to companies, J&J has
committed to partnering with small and diverse suppliers, offering creative solutions to its
marketing, development and R&D activities.
SWOT Analysis
Strengths
The R&D department uses abundant financial resources to hire dedicated personnel to
manufacture and even invent products of hygiene by means of patented technology and build up
a valued brand image. Furthermore, product leadership is a significant emphasis on product
creation and technological expertise, such that the best products in the industry can be delivered
to consumers.
Weaknesses
Global standardization is the main global cost savings technique, but this also contributes to low
adaptation. Besides the worldwide commodity structure, managers are not versatile enough to
meet the challenge of transition in Japan's local markets.
Opportunities
Most countries welcome foreign companies to present their goods to diversify the local economy
in order to contribute to local economic growth. Baby care and its brand name are gaining more
and more buyers so that they buy their products and quickly expand on the emerging global
markets of Japan.
Threat to society
J&J faces the challenge of low entrance barriers, because of low cost of construction, and when
barriers are reduced to allow consumers to move to other brands more likely in Japan, it would
be difficult to defend proprietary differences. J&J is another challenge to the economic
downturn, and under the Global Standardization Strategy it is very difficult to handle the
exchange-rate danger.