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Johnson & Johnson, Are They as Good as They Say They Are?

Autor:   •  March 1, 2019  •  Case Study  •  621 Words (3 Pages)  •  25 Views

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In recent years, Johnson & Johnson, one of the world's largest providers of diverse health care products seems to be hurting its own brand image because of the lack of transparency & recklessness in terms of distributing its wide range of products. Company bore huge damages paying out billions for failing to disclose critical, material information to the public & negligent in terms of a quality check while supplying its products. J&J and certain of its subsidiaries are involved in various claims and lawsuits regarding product liability, intellectual property, commercial and other matters; governmental investigations; and other legal proceedings. As of December 31, 2017, in the US there were about 2,000 plaintiffs with direct claims in pending lawsuits regarding injuries allegedly due to not disclosing critical information that could have prevented plaintiffs from having their health depleted. The company was also accused of importing, marketing & selling implants in foreign countries illegally & without due permission.

Despite being operated in highly competitive pharmaceutical and healthcare industries, J&J failed to take appropriate measures to maintain its quality over the supply. As a consequence, numbers of recalls surfaced because of quality control problems across product lines, in multiple factories & in several units. Recalls were simply made in bulk because of the recklessness of the company itself. Not only these incidents have created dent to its brand image, but loyal customers have been consistently pleading the company for millions of dollars.

Besides all the trouble, the company also experienced significant challenges to patents covering its largest product. Many claims have been lodged by the company’s competitors worldwide, challenging the validity of significant patents. In this situation, the company is expected to experience reduction of market share for its products which could really damage its growth.

As part of the damage control, the company made various strategic acquisitions and collaborations which are expected to enhance its operational capabilities. It has also revamped and centralized its quality control operations.


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