This paper examines the dynamics of the competitive environment that characterizes Johnson & Johnson, the world's largest and most comprehensive manufacturer of health care products and associated services. The environmental analysis based on the PESTEL framework is followed by Porter’s five forces framework. This leads on to SWOT analysis of the company. Opportunities and threats that are likely to impact strategic decisions and the outcomes of such decisions are also put in perspective.
This report will begin from using PEST analysis and Five Forces Model to analyse the most significant business environment changes in the global pharmaceutical industry over the past decade and find out industrial trends as well as threats and opportunities for global key players. And then some main strategic responses to these external changes of current pharmaceutical industry, Johnson & Johnson will be cited as an example analyzed in details about how have the company changed in recent years and evaluate the appropriateness of the strategies to the changing circumstances in the industry. Finally, the recommendation and conclusion will be given in terms of how to follow future industrial changes.
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