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Johnson Johnson 
Pharma / Pharmaceuticals and Healthcare
At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web1. Difficulty in achieving economies of scale: Johnson Johnson’s product portfolio is so wide that it can be difficult for the company to gain economies of scale or competitive advantage in every product segment.
2. Overloaded resources: With diversification, Johnson Johnson may end up using scarce resources on too many different projects which can impact the overall efficiency and effectiveness of the company.
3. Risk of misallocation of resources: With so many different products and projects, the company can run the risk of misallocating its resources among different product categories, thereby reducing the effectiveness of its diversification strategy.
4. Potential conflict of interest: Many of Johnson Johnson’s products are in direct competition with one another. This could create a potential conflict of interest for the company since there will be different departments working for the same product category.
5. Vulnerability to changes in the market: With so many different products competing in different markets, Johnson Johnson is at a higher risk of losses due to changing market trends.
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