jenniferlin

In Minnie Liu’s blog, she introduced the concept of “social responsibility and profit maximization can blend seamlessly into one procedure in the business world” through the idea of shared value. In the example that she raised upon on a commitment of the solution to Ebola outbreak, the continuously increase in stock price indicates a huge global demand of such vaccine and in accordance with a fulfillment of ethical duty, the US drug maker J&J has ensured that a safe vaccine will be launched in January 2015.

I agree with Minnie’s point of view, but furthermore, I think the company successfully    brings itself into the stage of a secure business competition. According to Porter’s generic strategies, the company is targeting on a broad market with a large buyer power. (Basically, J&J monopolizes the market with the latest potential vaccine.) J&J has access to leading scientific research and has only two rivalries at the moment. Since their company is the only operation of three that is invested with 200 million dollars, therefore threat of substitutes would not be a problem for distracting the research team and on the contrary, it enhances the research with a credible patent in return. And as a result, the expectation of such vaccine will transfer from the social value to the boost in stock value. Johnson and Johnson is a great demonstration of a shared value in terms of business development through social responsibility.