Johnson & Johnson is in deep trouble.
As explained in a recent article in the New York Times, the company has gotten caught distributing medicine that’s gotten moldy, has bits of metal in it, or was made in facilities that government inspectors found to be unsanitary. They’ve been forced to recall so many products that some consumers are finding it difficult to locate J&J products.
If they’re still looking for them, that is. There’s been a steady erosion of J&J’s market share in favor of generics, partly because people no longer believe that a product with the J&J label on it (or one of its 92 product brands) is of higher quality. That’s very bad news for a company whose market strategy assumes that people will pay more for a branded product.
