Supply chain disruptions damage Johnson & Johnson's 100-year-old reputationConsumer products giant Johnson & Johnson was besieged by product recalls during 2010 as some of its flagship offerings, including Tylenol, Mylanta, Pepcid AC and Motrin, were recalled after manufacturing blunders. Can the company recover from the string of supply chain disruptions and subsequent bad press?

While the company's products have long been synonymous with quality, there are concerns that J&J has inked too many supply deals with suppliers it did not properly vet; last year, J&J's McNeil Consumer Healthcare unit recalled 288 million items for various reasons, including pieces of metal some consumers found in its Mylanta products.

The recalls spanned various product lines and multiple factories, according to the New York Times. Moreover, the U.S. Food and Drug Administration affirmed recently that it has increasingly paid special attention to J&J products as it has received myriad complaints from consumers over moldy smells emanating from its medicines.

David Vinjamuri, a former marketing employee at the company, said that the company's continued product recalls could signal the end of the company's dominance in the market. "It looks like a plane spinning out of control," Vinjamuri said of J&J's blunders.

The biggest hurdle J&J faces in the coming year, according to analysts, is how to convince consumers to pay a premium for their products - especially since many pharmacies have increased the marketing behind their generic offerings as their name brand counterparts are off the shelves. 
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  1. I work at Johnson and Johnson and I find it hard to believe that the company is going to lose dominance due to a musty smell. It's not like the drugs weren't effective, the pallets that the shippers were on had some mildew on them, that's it.

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