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Business Strategies - Johnson and Johnson

Please discuss Johnson and Johnson's diversification strategies

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Diversification through Aggressive Acquisitions:
Johnson and Johnson's strategy throughout the past decade has been the acquisition of companies around the globe. This enables J&J to offer a wide variety of products and services, thus creating a diverse organization in consumer, pharmaceutical and medical/diagnostic products.

In the early 1990's, (1993) J&J purchased a skin care line called RoC S.A. of France. This company makes hypoallergenic facial, hand, body products. Following the acquisition of RoC S.A., J&J acquired Neutrogena Corporation who is well known dermatologist-recommended skin and hair care products. In 1995 J&J acquired the diagnostics unit of Eastman Kodak Company (known for their immunodiagnostics and clinical chemistry). In 1997 J&J combined its existing Ortho Diagnostics Systems unit with the operations acquired from Kodak to form Ortho-Clinical Diagnostics, Inc.

Further acquisitions continued in the late 1990's when J&J purchased DePuy, Inc. DePuy was a leader in orthopedic products, such as hip replacement devices. J&J already marketed one of the leading knee replacement devices in the United States, making for a nice fit between the two companies. On the negative side, J&J was forced to initiate a restructuring in 1998 following a number of difficulties.

Johnson and Johnson continue to diversify through acquisitions as in its recent purchase of an ...

Solution Summary

Discusses the diversification strategies of Johnson and Johnson.