The Market Structures. High Barrier to Entry to Johnson & Johnson Business

High Barrier to Entry to Johnson & Johnson Business
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High Barrier to Entry to Johnson & Johnson Business
Johnson & Johnson business is a global American enterprise started by Robert Wood Johnson, James Wood Johnson and Edward Johnson in 1886. It deals with health care products, carries out research, development, manufacture and sale of personal hygiene care products. Its pharmaceutical segment comprises gastrointestinal products, infectious disease products, immunology, and vaccine products (Davies & Padilla, 2019). The medical device segment entails products that treat cardiovascular diseases, blood glucose monitoring, and insulin delivery products. Trained professionals distribute their products to hospitals, retailers, and wholesalers. Whereas the Customer segment deals with the products used in baby care wound care as well as skincare. Here is a brief analysis of how high barriers influenced its profitability.
High barriers to entry are hindrances that keep off fresh competitors from effortlessly capturing a significant section of a market or business. They include strong brand identity, customer loyalty, and regulatory clearance before the beginning of the operation, bureaucratic licensing procedures, high customer switching costs, and unique tax benefits to existing firms. The barrier to entry can be introduced by the government or naturally (Davies & Padilla, 2019).
High barriers to entry influenced the company positively through profit increment. This is due to the less competition that can threaten the market command and sales of Johnson and Johnson pharmaceutical products globally. The company also controlled the global market due to strong customer loyalty (Mathur, 2019). According to Fatokun (2018), possible competitors could not influence the ...