Johnson & Johnson giant encounters blackout due to

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Johnson & Johnson: the failure of the giant in the dark is due to the inertia of the enterprise in protection. The failure of many enterprises is due to the failure of attack or the failure of protection. The two enterprises targeted by the failure cases in this period belong to the latter. For leading enterprises, how to set up barriers to entry, improve the difficulty of entry and maintain the advantage of the leader is a crucial issue. Otherwise, you will lose the right to formulate the rules of the game at any time

as one of the largest health care product manufacturers in the world with the largest variety of products, Johnson & Johnson has about 160 branches in 58 countries around the world, with annual sales of each branch ranging from US $100000 to more than US $1billion. The development and growth process of its branches generally goes through the following steps: first identify and select promising new businesses, gradually turn them into semi autonomous companies, and then take over the whole by Johnson & Johnson's special management technology and officially use the "Johnson & Johnson" brand. Over the years, Johnson & Johnson has sought and acquired more and more small companies capable of developing innovative products, turning them into major franchised outlets. The same is true for Johnson & Johnson to enter the medical stent business. In 1987, Johnson & Johnson purchased a patent for a kind of stent called Parma Schatz - a very small stainless steel tube that bends around the surface of a miniature balloon and can be implanted into a heart artery during vasodilation surgery. When the balloon expands at the place where the blood vessel is blocked, the stent also expands and straightens to form a support like a spring in a ballpoint pen. After the balloon was withdrawn from the blood vessel and removed, the stent could still keep the blood vessel dilated and unblocked

how big is this business? Before 1987, vasodilation had replaced cardiac shunt, and the operation cost was low. Therefore, medical stent is regarded as a revolutionary and innovative product. It greatly reduces restenosis after heart valve surgery, that is, the coronary artery is blocked again after surgery, and provides cardiologists with the tools they need. Seven years after Johnson & Johnson purchased the Parma Schatz stent, the stent was reviewed and approved by the U.S. Food and drug administration. Since then, things have become interesting

few such small medical devices can cause such a powerful shock in the health care industry as compared with the 1.2 cm long coronary stent. In 1995 alone, in its first year of use, more than 100000 patients in the United States used the stent. Later in the same year, Johnson & Johnson Intervention System (jjis, the name of medical stent business at that time) acquired condis, a company with us $500million of assets to produce high-pressure balloons for vasodilation. The acquisition of condis is undoubtedly a big stroke for Johnson & Johnson to expand its cardiology business

with condis, Johnson & Johnson will be able to provide a complete set of medical equipment for vasodilation surgery: the self-produced stent and the indispensable balloon and catheter produced by condis make Johnson & Johnson the exclusive supplier of comprehensive medical equipment favored by all hospitals. After the merger, Johnson & Johnson's sales in 1996 exceeded US $1.5 billion, and its sales are expected to increase by 18% annually

as a result, Johnson & Johnson began to enjoy the good time happily. During 1997, the company made rich profits and prospered, with a market share of nearly 95%; What is more gratifying is that the total profit is as high as 80%! The success of entering the medical stent business was highlighted in Johnson & Johnson's annual report

brilliance conceals enterprise defects

the huge market share of enterprises can mask many market problems, and Johnson & Johnson is no exception

at first, the symptoms of the market crisis were not found in time. Johnson & Johnson medical stent has greatly improved the traditional vasodilation, but its design is far from perfect. For the slender and highly curved heart vessels, the width and hardness of the stent make it very difficult to operate. At the same time, its visibility in the X-ray film is very limited, so it is more difficult to guide the stent to the vascular blockage. In addition, the Parma Shaz stent has only one fixed length, which forces doctors to frequently use two or more stents to treat vascular blockages with longer distances

some authoritative cardiologists began to complain, but Johnson & Johnson did not take this to heart. Because it has occupied the market, it has completely monopolized the product that consumers are eager for, and it also holds the patent right that can protect its own status. To make the situation worse, because the price of a stent is as high as $1600, and the feedback from customers is completely ignored, cardiologists accuse Johnson & Johnson of asking excessive prices, not offering any product price concessions, and being indifferent to the huge pressure on hospitals to control health care costs

do you still remember the big deal of acquiring condis? Condis is a company based on the needs of entrepreneurs and customers. What it brings to the merged company is not only its leading market vasodilation related products. It also has extensive experience in catheterization laboratory technology and communication with cardiologists. The "core working group" of condis is well-known. It is proficient in rapidly developing new products through the combination of marketing, research and special business production. Therefore, cardiologists naturally expect that the new company after merger and acquisition can combine the strong financial resources of Johnson & Johnson and the rapid market development ability of condis to quickly launch a new generation of products that they need and can overcome the original technical defects of Parma Shaz stents

it is surprising that the due synergy between Johnson & Johnson and condis has not been realized or developed. After the acquisition, Johnson & Johnson's situation is as follows: first, it failed to introduce nylon into the 3D printing industry. There are strong competitors, so there is no sense of urgency; Second, the integration process of the two businesses is very slow; Third, a few businesses that have been combined are inappropriate. The opinions of key managers and researchers were not taken seriously, while the resistance of condis employees made the situation more complicated. A senior executive at Johnson & Johnson said, "we choose people who don't care about their position." Finally, the "core working group" introduced by condis to the merged company was dissolved, and all employees who did not want to stay were dismissed, 64 bit turn the driven pointer to the high impact energy position (if digital display devices are used, only a few of the senior managers remain. "

condis used to be famous for its rapid product development. Now, the new condis is no longer popular and has not been able to launch any important new products in the past two years after the merger. In such a slow and targeted business merger process, Johnson & Johnson has lost valuable time, resources and opportunities.

lack of innovation Eat the fruit

technological innovation and development will not stop because a product has an absolute advantage. Sometimes, it will become the driving force of technological innovation. In response to the complaints of the medical community about Johnson & Johnson stents, Jiateng company just has such a new technology, and has produced products that are much better than Johnson & Johnson stents: more flexible stents, higher quality catheters, and more than a year earlier than the improved Johnson & Johnson stents in the European market. In particular, Jiateng has a highly concentrated and decisive sales force, which has an urgent and comprehensive impact. The difference between the European market and the American market is reflected in two aspects: first, the European market is small (the scale is only 1/3 of the American market); Second, the market generally accepts new products faster, which means that the product price is lower, the profit margin is smaller, and the market competition is more intense. These differences make the European market a testing ground for subsequent changes in the US market

as the improved new technology is put into use in the European market, American cardiologists are gradually envious of it, and strongly request the U.S. Food and drug administration to accelerate the approval of these improved stents to enter the U.S. market. Experts are not blindly loyal to a certain brand. On the contrary, they are loyal to high and new technology and rely on the latest technology to continuously achieve their own development. In october1997, the US national food and Drug Administration approved the multi connection stent of Jiateng company. After 45 days, the market share of Jiateng's products rose to 70%. The sales volume of Johnson & Johnson supports plummeted, and the market share suddenly fell to 8% by the end of 1998

the tragedy of oligarchy

the question can be summed up as: why didn't Johnson & Johnson develop the second-generation scaffold? The company owns the market and resources, and knows that customers need new products, but why is there still no move? The answer from the simple analysis is: the company already has a patent. Why bother about it? This is naturally one of the reasons. The managers of Johnson & Johnson have repeatedly reiterated to us that they mistakenly believe that the patent authority is incomparable. We also heard Robert cross, chairman of Johnson & Johnson Group and chairman of condis global franchise company, on this: "there is no doubt that we should develop and have the second-generation bracket, but in fact we do not." Another senior manager also said: "perhaps the patent right of Parma bracket makes us a little too comfortable and forget ourselves." However, there are three explanations that seem to be more recognized in the marketing community: first, born in merger, died in merger; Second, too complacent and arrogant; Third, we did not know our customers and competitors

born in merger, died in merger. Johnson & Johnson has always been known for its emphasis on innovation. However, most of its innovative technologies are purchased from outside the company, not created and developed within the company. For example, the development of the company in the medical industry through the acquisition of other companies is three times that through its own internal development. These acquired companies are unlikely to develop new product lines for a period of time. Why? Because products, information and capabilities interact. Buying an innovative technology can solve a temporary need, but it also makes the company more defenseless and vulnerable to new competitors who innovate faster

in addition, an acquisition is likely to weaken the innovation ability within the company. After Johnson & Johnson purchased the scaffold technology from Parma, the company should rely on its own strength. However, stanza Rowe, a senior executive, told us, "Johnson & Johnson has no ability to redevelop the scaffold, because Pama is the real designer of the scaffold. When Pama sells this technology, it will be completely sold and no longer responsible.". Therefore, within the "Johnson & Johnson Intervention System", people also expect that Johnson & Johnson can continue to acquire a company to obtain a new generation of technology, thus giving up the efforts to carry out reform within the company, which also indicates a certain failure. The acquisition of condis did not bring much help to Johnson & Johnson. This is not only because Johnson & Johnson is still planning to continue to rely on acquisition to maintain its development, but also because this troublesome acquisition has put the "Johnson & Johnson Intervention System" in trouble, losing a number of management talents and scientific and technological elites. Even competitors are aware of this problem. Ronald Dorrance, CEO of Jiateng company, told us: "after the merger, they are ready to enjoy their success while ignoring that they should continue to maintain the company宝宝腹胀气快速排气法

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