Competitive Advantage Attribute of Johnson & Johnson

Subject: Company Analysis
Pages: 2
Words: 550
Reading time:
3 min
Study level: College

Johnson & Johnson is an American corporation with a global reach, specializing in pharmaceutical products and medical devices, amongst other consumer products. The company was founded as a family business in 1886 by three brothers, Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson, and today is the largest pharma company in the world (“A history of Johnson & Johnson,” 2021). Johnson & Johnson strives to remain current and relevant, which is reflected in its product range, such as the COVID-19 vaccine approved in February 2021 (“Johnson & Johnson COVID-19 Vaccine Authorized by U.S. FDA For Emergency Use – First Single-Shot Vaccine in Fight Against Global Pandemic”, 2021). This corporation, one of the most well-known worldwide, uses several strategies to remain competitive, primarily focused on innovation.

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A competitive advantage is established with the goal of improving the company’s standing in the market against competition. These attributes should be close to impossible to imitate since they differentiate the specific firm or corporation from other similar businesses in the same field. For Johnson & Johnson, the large research and development budget gives the company a competitive advantage by allowing continuous innovation.

Some of the largest competitors of Johnson & Johnson in the pharmaceutical field are Pfizer, Bristol Myers Squibb, Merck, Unilever, and Procter & Gamble (“Johnson & Johnson Competitors,” 2021). Johnson & Johnson excels in several attributes of competitiveness, such as being the 1st in the Gender, Diversity, and Pricing ranks according to Comparably (“Johnson & Johnson Competitors,” 2021). However, it is the abovementioned innovative strategies that elevate the company above other corporations in the trade arena.

Similar to most large companies, Johnson & Johnson has a corporate strategy that it uses to guide its actions. The Strategic Framework of Johnson & Johnson, as established by its founders over a century ago, emphasizes the importance of “caring for people” and the need for constant growth and development (“JNJ Analysis,” n.d.). One of the growth drivers, “creating value through innovation” (“JNJ Analysis,” n.d.), creates an indisputable competitive advantage for Johnson & Johnson. This advantage can be seen in the company’s commitment to positive change, developing its product range and business model depending on the current market environment. For example, Johnson & Johnson announced the introduction of at least ten new drugs before 2019 (Bomey, 2017), and during the global pandemic of coronavirus was one of the first companies to develop a vaccine.

The strategies that Johnson & Johnson uses result in its continuous improvements in competitiveness in the market. As of August 2021, Johnson & Johnson’s stock prices have been increasing on average for the past 40 years (“NYSE: JNJ,” 2021). Furthermore, its market share has risen to 11.58% as of the second quarter of 2021 (“Johnson and Johnson,” 2021), meaning its business tactics have been working efficiently.

While many pharmaceutical companies attempt to remain current with their products, Johnson & Johnson has been particularly successful. By prioritizing the customer and acknowledging the need for constant innovation, JNJ created a reliable brand that is competitive and profitable. Furthermore, Johnson & Johnson’s product range is vast, which makes it appealing to many customers, as well as enters it into numerous trade arenas. Although it could be considered dangerous to expand into multiple markets, Johnson & Johnson manage it skillfully, maintaining its global excellence.


A History of Johnson & Johnson. (2021). Pharmaphorum. Web.

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Bomey, N. (2017). J&J says 10 new drugs could bring in $1B each in sales. USA Today. Web.

Johnson & Johnson COVID-19 Vaccine Authorized by U.S. FDA For Emergency Use – First Single-Shot Vaccine in Fight Against Global Pandemic. (2021). Johnson & Johnson. Web.

Johnson & Johnson Competitors. (2021). Comparably. Web.

Johnson and Johnson. (2021). CSIMarkets. Web.

JNJ Analysis. (n.d.). Google Sites. Web.

NYSE: JNJ. (2021). Google Finance. Web.