Rebirth of the Industrial Tycoon

When most people think of Johnson \u0026 Johnson, their first thought is that it sells skin care products, diapers and sanitary napkins.

But in fact, Johnson \u0026 Johnson is the world's largest health care and care products company.

The history of Johnson \u0026 Johnson can be traced back to the American Civil War, when Baron Lister founded the "germ" theory and introduced the concept of sterilization and disinfection in surgical procedures.

An American general named Robert Wood Johnson recognized Baron Lister's views and decided to set up a company to produce sterile surgical dressings.

In 1886, a German named Karl Benz invented the world's first car. Benz, who invented the car, his English name is spelled Benz, and the current Chinese translation is called Benz.

Also in 1886, a pharmacist named Asa Candler added baking soda and ice cubes when making headache syrup. It tasted pretty good, and Feizhai Happy Water was born.

Also in 1886, General Johnson founded the Johnson \u0026 Johnson Company.

Seven years later, in 1893, Johnson \u0026 Johnson launched baby powder, and my mother no longer had to worry about heat rash!

At the beginning of the 20th century, the maternal kit launched by Johnson \u0026 Johnson became a must-have for all obstetricians in the United States. The sterile medical supplies inside greatly reduced maternal infections.

During World War I, companies like Johnson \u0026 Johnson naturally produced sterile supplies for military use and made a lot of money.

In 1920, Johnson \u0026 Johnson introduced Band-Aid again, and Linglingqi's gunshot wound could finally be bandaged.

In 1935, Johnson \u0026 Johnson introduced disposable diapers. Three years later, Johnson \u0026 Johnson introduced babies, followed by baby cream and baby soap.

By 1944, when Johnson \u0026 Johnson went on the market, they had launched more than 1,200 product types.

The peak of Johnson \u0026 Johnson was in 2006. In this year, Johnson \u0026 Johnson ranked first in the world in the field of impurity pharmaceuticals by Fortune, and ranked 35th among the Fortune 500 companies.

In the following years, Johnson \u0026 Johnson's ranking among the world's top 500 companies has always remained in the early 100s, and it has also maintained its position in the 30s among the top 500 American companies.

The most difficult thing is that in the more than 100 years since its birth, Johnson \u0026 Johnson has been profitable every year. Johnson \u0026 Johnson has never had a loss in its annual financial report. Therefore, every time the most profitable companies in the world are selected, Johnson \u0026 Johnson is on the list. Famous.

However, not losing money does not mean revenue growth. After Johnson \u0026 Johnson reached its peak in 2006, it immediately entered a period of recession, with weak performance growth, constant lawsuits, and various product recalls, which made Johnson \u0026 Johnson falter in the next few years.

…

In a five-star hotel in New Jersey, USA, Li Weidong was holding Johnson \u0026 Johnson's last quarter's financial report.

Lu Guangming, who was next to him, said: "According to the financial report data, Johnson \u0026 Johnson's revenue dropped significantly last quarter. Although there are still relatively substantial profits, revenue growth has shown a weak trend. It seems that Johnson \u0026 Johnson's revenue has dropped significantly. There is something wrong with the business.”

In the Chinese market, although Puppy Health has taken away the business of Johnson \u0026 Johnson, it is only a partial medical device after all, accounting for only a very small part of Johnson \u0026 Johnson's revenue, and it is not enough to shake the big tree of Johnson \u0026 Johnson.

Therefore, Lu Guangming blamed Johnson \u0026 Johnson's revenue decline on Johnson \u0026 Johnson's own problems.

Li Weidong shook his head: "It's not that Johnson \u0026 Johnson has a problem, it's that the U.S. economy has a problem. Johnson \u0026 Johnson's products are mainly daily consumer goods. The decline in Johnson \u0026 Johnson's revenue means that the American people have reduced their daily consumption of consumer goods. consumption. The U.S. economy relies heavily on consumption. If there are problems with daily consumer goods, it can only mean that there is something wrong with the U.S. economy.

Moreover, Americans' consumption concept is different from ours. We earn money first and then spend it. They spend money first and then earn money. What they consume this month will be paid back next month. If consumption decreases, either unemployment is rising or credit is in trouble. "

At this time, Li Weidong couldn't help but think of the subprime mortgage crisis in the United States.

When many people mention the U.S. subprime mortgage crisis, the first thing they think of is the bankruptcy of Lehman Brothers in 2008, so it is generally believed that the subprime mortgage crisis occurred in 2008.

But in fact, in 2006, the subprime mortgage crisis in the United States had already begun to emerge.

By the time global stock markets plummeted in 2007, the subprime mortgage crisis had fully erupted. When Lehman Brothers went bankrupt in 2008, the subprime mortgage crisis had spread across the world.

"The subprime mortgage crisis is coming. Except for those short sellers, no American company can escape this disaster!" Li Weidong took a deep breath, then looked at his watch and said, "The appointed time is coming soon, let's Time to go to Johnson \u0026 Johnson.”

…

The Johnson \u0026 Johnson family is no longer in charge of Johnson \u0026 Johnson.

At that time, the second generation of the Johnson \u0026 Johnson family, the son of the founder General Johnson \u0026 Johnson, led Johnson \u0026 Johnson to become a giant in the world, but in the end he could not escape the title of "prodigal son".

The second-generation Johnson divorced when he was 73 years old and married his Polish maid. The maid then defrauded her of a large amount of money. After the second-generation Johnson passed away, the maid suddenly became one of the richest women in the world. .

Because of this incident, the Johnson \u0026 Johnson family became a laughing stock in the business world. Since then, members of the Johnson \u0026 Johnson family have ceased to serve as presidents of the Johnson \u0026 Johnson Group. Instead, they have relied on huge trust funds to live the boring lives of ordinary rich people, such as the New York Jets who bought the football team.

Johnson \u0026 Johnson, on the other hand, is managed by professional managers.

At this time, the person in charge of Johnson \u0026 Johnson was the sixth-generation CEO Bill Weldon. However, Li Weidong was not able to meet Mr. Weldon. Perhaps Li Weidong's level was not high enough and he was looked down upon.

The person responsible for receiving Li Weidong was a woman named Shelly McCoy.

This woman is not an ordinary woman. She has been ranked among the 50 most influential business women in the world by Fortune magazine for many years in a row, and she is even ranked above Ms. Gree Dong.

If you think about Ms. Dong's status in the Chinese business community, you can probably understand Ms. McCoy's status in the American business community.

McCoy came from a scientific research background and was later promoted to a management position. Since many of Johnson \u0026 Johnson’s products are developed and designed for women, as a female manager, McCoy can easily grasp women. Due to the characteristics of the market, she has been able to rise step by step.

Today, McCoy is the most favorable contender to become the next CEO of Johnson \u0026 Johnson.

After the two exchanged pleasantries, Li Weidong explained the purpose of this time.

"Ms. McCoy, I came to Johnson \u0026 Johnson this time so that Johnson \u0026 Johnson can outsource some of the production of medical devices to us." Li Weidong said.

"Mr. Li, what are some of the medical devices you are talking about?" McCoy asked.

"We can produce electronic blood glucose meters, electronic blood pressure meters, and other products like this," Li Weidong replied.

McCoy smiled: "Mr. Li, before you came, I read a report from Asia. Last quarter, the sales of our electronic blood pressure monitors and blood glucose meters dropped significantly. This is because Your company introduced cheap products and seized our market.

Now you want us, Johnson \u0026 Johnson, to hand over the production of our products to you. Don’t forget, we are competitors! Why should we give our business to our competitors? "

"Because our production costs are lower. We have production technology and experience. If Johnson \u0026 Johnson hands over its products to us for OEM, then the price of the products will be cheaper and more competitive. Facing competition from Roche, Bayer, Abbott, etc. When facing opponents, you can also take a more advantageous position," Li Weidong replied with a smile.

"I admit that China's production costs are indeed cheaper, but we at Johnson \u0026 Johnson also have production plants in China. Even if we plan to transfer product production to China, we can still use our own factories." McCoy responded calmly.

"Ms. McCoy, are you referring to the factory that produces surgical sutures?" Li Weidong asked with a smile.

Johnson \u0026 Johnson entered China very early and was one of the first foreign-funded companies to set up factories in China. However, Johnson \u0026 Johnson's factories in China mainly produce relatively low-end daily necessities, and the production of high-end products has not been moved to China.

For example, for medical device products, Johnson \u0026 Johnson's factories in China mainly produce surgical sutures.

Needless to say, ultrasound equipment, minimally invasive equipment and other medical equipment, even home medical equipment such as electronic blood pressure monitors and blood glucose meters, are produced by Johnson \u0026 Johnson in the United States. However, Johnson \u0026 Johnson does not produce any medical equipment with a slightly technical content. It will be placed in China.

Just listen to Li Weidong continue to say: "Ms. McCoy, you must know that transforming from a company that produces surgical sutures to producing electronic medical devices is almost equivalent to rebuilding a factory, which requires a lot of money, manpower, From an economic point of view, this is not cost-effective.”

McCoy still had an indifferent expression, and she nodded: "Mr. Li, I admit that what you said makes sense, but the transfer of the production line involves the company's strategy, and Johnson \u0026 Johnson has no intention of transferring us in the short term. production line.”

"Ms. McCoy, don't refuse in a hurry!" Li Weidong laughed, and then said: "To be honest, Johnson \u0026 Johnson is only my first destination in the United States. Next, I will go to Abbott Laboratories. I will go to Europe to visit Dr. Mike and Bayer, and after returning to Asia, I will also go to Omron and Citizen in Japan.”

The brands mentioned by Li Weidong all produce household medical devices, and they are also competitors of Johnson \u0026 Johnson in the household medical device market.

Therefore, the implication of Li Weidong's words is very obvious. Even if Johnson \u0026 Johnson is not interested in the OEM model, I can still seek cooperation with other well-known brands.

With China's low manufacturing costs, no matter which brand chooses the OEM model, the price of their products will inevitably be significantly reduced. When the time comes, these low-priced products will seize the market of other brands.

Although Johnson \u0026 Johnson is not interested in Li Weidong's OEM proposal, they cannot guarantee that other competitors will also reject Li Weidong.

Once someone really cooperates with Li Weidong, then for other brands, their market will be eaten away, and that will be the beginning of a nightmare.

After understanding this, McCoy's face suddenly darkened, and she said coldly: "Mr. Li, are you threatening me?"

"I'm just talking about business." Li Weidong smiled unmoved, and then continued: "Ms. McCoy, this is just a business!"

The two looked at each other for a few seconds, and finally McCoy sighed: "Okay, I will report to the president as soon as possible."

…

Li Weidong and Lu Guangming left Johnson \u0026 Johnson.

On the way back in the car, Lu Guangming couldn't help but ask: "Chairman, do you think this can be done?"

"At present, it seems that it is 50% sure! If Johnson \u0026 Johnson does not cooperate with us, it will either build a factory in China or prepare to withdraw from the Chinese market! The production cost in the United States is too high, how can it compete with Chinese manufacturing!"

Li Weidong smiled proudly, and then said: "We still have to visit companies like Abbott, Bayer, and Omron. As long as one company is willing to cooperate with us, there will be an opening. Then we can talk to other companies. OEM is much easier.

But you have to be strong when making iron. If we didn't have the technology and the supply chain for parts, how could we be so shameless as to ask for OEM orders from Johnson \u0026 Johnson! "

Lu Guangming nodded and said, "Then I'll contact Abbott and make an appointment for a meeting."

"In addition to Abbott, help me contact Ford." Li Weidong said.

"Ford? Which Ford? The one that makes cars? Or the one that was president?" Lu Guangming asked subconsciously.

"Of course it's the Ford who made cars. Didn't the one who became president die at the end of last year? You have to burn paper to contact him." Li Weidong said with a smile.

"Then what excuse do you use to contact Ford?" Lu Guangming asked.

"Just say that I am very interested in the Jaguar Land Rover brand! Is Ford willing to sell it?" Li Weidong replied.

"What? You want to buy a Jaguar Land Rover!" Lu Guangming couldn't believe his ears.

Li Weidong said: "The U.S. economy is going to have problems. With such a good opportunity, of course I have to play big!"

.