This heavy dependence creates vulnerabilities, particularly during economic downturns or shifts in health care policy that could alter consumer access or affordability.
If the U.S. healthcare system were to undergo a major overhaul, it could disrupt the purchasing patterns of healthcare providers and consumers, and thus J&J's sales. Moreover, while the company has begun to expand into emerging markets, its canadian healthcare and medical email list limited penetration in regions such as Asia Pacific and Africa underscores potential weakness, highlighting the company's overexposure to revenues in its traditional markets.
A diversified portfolio across different geographic areas is necessary to limit the risks associated with market fluctuations.
Innovation management and slow R&D cycles
In the fast-moving healthcare and pharmaceutical industries, the pace of innovation can often determine a company’s relevance in the marketplace. While extensive and historically strong, Johnson & Johnson’s Research and Development (R&D) processes can be slow compared to more agile competitors.