Essays on How Johnson & Johnson Can Use Ansoff Matrix Tool for Diversification Case Study

Download full paperFile format: .doc, available for editing

The paper "How Johnson & Johnson Can Use Ansoff Matrix Tool for Diversification " is a great example of a business case study.   Young (2013, 65) identifies diversification as one of the most important strategies that business firms use to achieve their various desired goals. For instance, diversification refers to the aspect of branching out into several categories, marketplaces, and industries. Despite the fact that this initiative presents some common risks to a given business company, diversification has always been perceived as a safe approach against different organizational setbacks downturns in a single industry or a way to grow your business.

For instance, any step for improvement in the operation of a business is often associated with rewards and benefits. Westwood (2011, 42) adds that successful business leaders and managers have to understand that it is important to take risks and diversify their operations into new markets if their firms need to develop and grow further. As a result, managers need to find new strategies for increasing their organizational profits while reaching new customers in their different locations. There are a plethora of options available including the decision to opening up new markets or developing new products.

However, the biggest challenge arises when one wants to choose the best strategy to use (Wernerfelt, 2014, 74). Different approaches including the Ansoff Matrix tool can play a critical role in helping various organizations to think about the potential risks and benefits associated with each and every choice. According to Klier (2009, 48) strategies such as the Ansoff Matrix can also help the own organization manager to devise a plan that best suits the current business situation.

This paper examines how Johnson & Johnson, a company with the aim of expanding its business of coffee shops can use the Ansoff Matrix tool to achieve its desired goal in diversification. The paper summarizes a small part of the company, presents detailed advice to the company management on reducing the risks associated with the diversification process. The article makes a succinct conclusion after demonstrating the cons related to the decision of diversification. An Overview of Johnson & Johnson Company According to Young (2013, 65), Johnson & Johnson operates as a renowned American multinational pharmaceutical, medical devices, and a consumer packaged products processor and manufacturer.

The company was founded in 1886 and bears its headquarters at New Brunswick in New Jersey near Rutgers University campus. Conversely, the company’ s primary consumer division has its location in Skillman, New Jersey (Wernerfelt, 2014, 74). The company’ s common stock comes out as a constituent element of the Dow Jones Industrial Average, which propels it to appear among the Fortune 500. Westwood (2011, 42) adds that Johnson & Johnson Corporation comprises of additional 250 subsidiary companies with their operations and presence being felt in more than 60 countries.

The corporation’ s products are sold in over 175 countries with more inventions and innovations pushing the company to consider diversification as the best strategy to attain more supernormal profits (Klier, 2009, 48). The company prides itself with a plethora of brands of different products whose goal is to satisfy the different needs of customers. These products include first aid supplies, numerous household products and a variety of names of medications (Tallman & Li, 2015).


Ansoff, H. I., 2008, “Strategic issue management” Strategic Management Journal, 1(2), 131–148.

Baker, M. J., 2011, Marketing strategy and management, Springer. Retrieved from

Betz, F., 2012, “Strategic business models” Engineering Management Journal, 14(1), 21–28.

John, L. W. J. P.,2012, Strategic planning for information systems, Place of publication not identified: John Wiley & Sons.

Johnson, G., Scholes, K., & Whittington, R., 2008, Exploring corporate strategy: Text and case, Pearson Education.

Kitchen, P. J., & Proctor, T., 2011, The informed student guide to marketing, London: Thomson Learning.

Klier, D. O., 2009, Managing diversified portfolios: What multi-business firms can learn from private equity, Heidelberg: Physica-Verlag.

Knecht, M., 2014, Diversification, industry dynamism, and economic performance: The impact of dynamic-related diversification on the multi-business firm, Wiesbaden: Springer Gabler.

Tallman, S., & Li, J., 2015, “Effects of international diversity and product diversity on the performance of multinational firms” Academy of Management Journal, 39(1), 179–196.

Wernerfelt, B., 2014, “A resource-based view of the firm” Strategic Management Journal, 5(2), 171–180.

Westwood, J., 2011, Marketing your business, London: Kogan Page.

Young, L., 2013, Marketing the professional services firm: Applying the principles and the science of marketing to the professions, Hoboken, N.J: Wiley.

Download full paperFile format: .doc, available for editing
Contact Us