Research Paper on:
External Analysis; Johnson and Johnson

Unformatted Sample Text from the Research Paper:
and Johnson, 2007). The environment is becoming harsh for many smaller companies due to economic pressures, this gives Johnson and Johnson another opportunity, that of acquisition; Johnson and Johnson are  made up of more than 250 smaller companies and their latest major acquisition was Pfizer, acquisition is a core competence. Global economic development is increasing the size as many potential  market, especially in every such as China, increasing the potential for sales. 1.2 Threats There are a large number threats; Johnson & Johnson half a high number of patented products,  the ability to protect those patents can be difficult, especially in some economies where there are a large amount of counterfeit drugs. The economic climate is also difficult, with a  very weak dollar impacting on the levels of the company. Likewise the general cost of imports is rising due to the rising oil prices, as goods need to be transported,  increasing the underlying costs to the company (Barrell and Pomerantz, 2008). The competitive commercial environment for pharmaceutical companies and related industries is very competitive, as the competition is increasing as  more research and development takes place and patents expire. 2. Porters Five Forces 2.1 Threats of new Entrants In any industry there will always be effective new entrants. In pharmaceutical related industries  there are high startup costs, research and development can be costly and require a large amount of capital and there are downward pressures on profit margins, all of these may  conditions which are not attractive to new entrants (Nellis and Parker, 2000). However, it is highly likely that there will be new entrants from existing companies moving into segments of  the company already operates within due to the board variety of markets in which the company is active. 2.2 Rivalry Rivalry within the pharmaceutical industry is very high, increased levels