Chapter 697 Play big!

When mentioning Johnson \u0026 Johnson, most people's first reaction is to sell skin care products, diapers and sanitary napkins.

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

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

An American general named Robert Wood Johnson agreed with Baron Lister's views, so he decided to start a company to produce sterile surgical dressings.

In 1886, a person named Karl Benz in Germany invented the world's first car. The 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, and the taste was not bad, and Fat House Happy Water was born.

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

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

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

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

In 1920, Johnson \u0026 Johnson launched a Band-Aid, and Ling Lingqi's gunshot wound could finally be covered with an OK bandage.

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

By 1944, when Johnson \u0026 Johnson went public, they had launched more than 1,200 types of products.

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 in Fortune, and ranked 35th among the world's top 500 companies.

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

The most difficult thing is that Johnson \u0026 Johnson has been profitable every year for more than 100 years since its birth. Johnson \u0026 Johnson has never lost money in its annual financial report.

Johnson \u0026 Johnson is on the list.

But not losing money does not mean that revenue growth. After Johnson \u0026 Johnson reached its peak in 2006, it entered a recession period. The performance growth was weak, there were constant lawsuits, and various product recalls made Johnson \u0026 Johnson faltering in the next few years.

...

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

Lu Guangming next to him said: From the financial report data, Johnson \u0026 Johnson's revenue in the last quarter dropped significantly. Although it still has a relatively large profit, the revenue growth has shown a weak trend. It seems that Johnson \u0026 Johnson There is a problem with the operation.”

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

Therefore, Lu Guangming blamed the decline in Johnson \u0026 Johnson's revenue 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 US economy has a problem. Johnson \u0026 Johnson's products are mainly consumer goods, and the decline in Johnson \u0026 Johnson's revenue means that the American people have reduced consumer goods. Consumption. The U.S. economy relies heavily on consumption. If there are problems with daily consumer goods, it can only mean that the U.S. economy has problems.

What's more, Americans' consumption concept is different from ours. We make money first and then spend it. If consumption falls, either unemployment has risen, or credit is about to go into 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 US subprime mortgage crisis, the first thing that comes to mind 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 appear.

When the global stock market plummeted in 2007, it was regarded as the full-scale outbreak of the subprime mortgage crisis. When Lehman Brothers went bankrupt in 2008, the subprime mortgage crisis had burned all over the world.

The subprime mortgage crisis is coming. In this catastrophe, except for those short sellers, no American company can escape! Li Weidong took a deep breath, then looked at his watch, and said: The appointment time is coming soon, we Time to go to Johnson \u0026 Johnson.

...

The Johnson \u0026 Johnson family no longer runs Johnson \u0026 Johnson.

The second generation of the Johnson \u0026 Johnson family, the son of the founder, General Johnson, led Johnson \u0026 Johnson to become a giant in the world, but in the end it was hard to escape the title of prodigal son.

The second-generation Johnson divorced at the age of 73, and went to his own Polish maid, and was cheated of a lot of money by the maid. When the second-generation Johnson passed away, the maid became one of the richest rich 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 the president of the Johnson \u0026 Johnson Group, and have instead relied on a large number of trust funds to live the boring life of ordinary rich people, such as buying the New York Jets football team.

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

At this time, the sixth-generation CEO Bill Weldon was in charge of Johnson \u0026 Johnson. However, Li Weidong was unable to meet this Mr. Weldon, probably because Li Weidong's level was not high enough for others to look down on him.

The person in charge of receiving Li Weidong was a lady named Shelley McCoy.

This lady is not easy. For many years, she has been included in the Fortune magazine's 50 most influential business women in the world, and her ranking is still above Ms. Gree Dong.

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

McCoy was born in scientific research and was later promoted to a management position. Since many products of Johnson \u0026 Johnson are designed and developed for women, as a female manager, McCoy can easily grasp women The characteristics of the market, so she can also step up.

Today, McCoy is the most favorable contender for 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 because Johnson \u0026 Johnson can outsource part of the production of medical devices to us. Li Weidong said.

Mr. Li, what are some of the medical devices you mentioned? McCoy asked.

Electronic blood glucose meters, electronic blood pressure meters, we can produce such products. Li Weidong replied.

McCoy smiled: Mr. Li, before you came, I read a report from the Asian region. Last quarter, the sales of our electronic blood pressure monitors and blood glucose monitors dropped significantly. Your company has launched cheap products and seized our market.

Now you want us, Johnson \u0026 Johnson, to hand over the product production business to you. Don't forget, we are competitors! Why would we give business to a competitor?

Because our production cost is lower. We have production technology and experience. Johnson \u0026 Johnson will hand over the product to us as an OEM, so the price of the product will be cheaper and more competitive. In the face of competition from Roche, Bayer, Abbott, etc. Against opponents, you can also occupy a more dominant position. Li Weidong replied with a smile.

I admit that the production cost in China is indeed cheaper, but Johnson \u0026 Johnson also has a production plant in China. Even if we still plan to transfer the production of products to China, we can use our own factory. McCoy responded lightly.

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 also one of the first foreign-funded enterprises 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 moved to China.

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

Needless to say, medical equipment such as ultrasound equipment and minimally invasive equipment, even household medical equipment such as electronic blood pressure meters and blood glucose meters, Johnson \u0026 Johnson is also produced in the United States. will be placed in China.

Li Weidong went on to say: Ms. McCoy, you must be aware that transforming from a company producing surgical sutures to producing electronic medical devices is almost equivalent to rebuilding a factory, which requires a lot of money, manpower, Incapacity and time cost. From an economic point of view, it’s not worth it.”

McCoy still had a calm expression, and she nodded: Mr. Li, I admit that what you said is very reasonable, but the transfer of the production line involves the company's strategy, and we, Johnson \u0026 Johnson, have no intention of transferring us in a short time. production line.

Ms. McCoy, don't rush to refuse! Li Weidong laughed, and then said: To be honest, Johnson \u0026 Johnson is only my first destination in the United States, and I will go to Abbott next. I will go to Europe to visit Dr. Mike and Bayer, and when I return to Asia, I will go to Japan’s Omron and Citizen.”

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

So Li Weidong's implication is obvious, even if you Johnson \u0026 Johnson are not interested in the OEM model, I can still seek cooperation from 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 greatly reduced. At that time, 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 swallowed up, and that is the beginning of a nightmare.

After thinking about 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 let out a long sigh: Okay, I will report to the president as soon as possible.

...

Li Weidong and Lu Guangming left Johnson \u0026 Johnson.

On the return journey, Lu Guangming couldn't help asking: 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, he will either build a factory in China by himself, or he will 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 such as Abbott, Bayer, and Omron. As long as there is one company willing to cooperate with us, there will be a breakthrough, and then we will talk to other companies. OEM is much easier.

However, you have to be hardworking yourself. If we didn't have this technology and a supply chain for parts, how could we be ashamed to come to Johnson \u0026 Johnson for an OEM order!

Lu Guangming nodded and said, Then I'll contact Abbott and make an appointment to meet.

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

Ford? Which Ford? The one who built the car? Or the one who was president? Lu Guangming asked subconsciously.

Of course it's the Ford that made the car. Didn't the one who became the 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! Will Ford 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 American economy is about to go into trouble. With such a good opportunity, of course I have to make the most of it!

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