How can the corporation organise and invest in its resources (land, labour, capital, managerial skills) in such a way that it can maintain a competitive advantage over other firms in these markets?

A. Cost leader? Pricing strategy?

In terms of the pricing strategy, Johnson and Johnson already have several underway and existent in areas that are most needed. This is evidenced in their pricing programs. The global access and partnerships program (GAPP) is an instance of such pricing strategy where in HIV medication has been made accessible through a not for profit organisation (special effort) in the least developed areas of Africa including the Sub-Saharan region. Others include the supply of QUINVAXEM (a vaccine for five diseases) to the UNICEF and Global Alliance for Vaccines and Immunization with varying pricing strategies in different markets. It can be stated that while their prices are competitive, they are still affordable with initiatives for pricing strategies taken in key and most relevant areas. This is an aspect in which Johnson and Johnson does have a competitive edge over other companies (Johnson & Johnson, 2016).

B. Product differentiation?

Product differentiation is another arena in which Johnson and Johnson already possess a vast competitive advantage over. The most popular in this aspect is the unique Johnson and Johnson baby products. The differentiation is so much so that baby products even to this day is synonymous with Johnson and Johnson. Although there are more products emerging in developing countries, the reputation stands firm which in fact takes on to the following aspect of market niche. This has given the company a competitive advantage that has been unparalleled to date (Johnson & Johnson, 2014).

C. Focus on market niche?

The market niche as mentioned above is already present in the current market scenario with those of the markets for baby products. However, to further maintain an already existent market niche, the company may consider creating other market niches in several different areas. Another market niche that Johnson and Johnson has is in the area of vaccines where, as aforementioned supply vaccines to the UN exclusively (Johnson & Johnson, 2014).

D. Outsourcing, alliances, mergers, acquisitions?

In this regard it has been deemed that Johnson and Johnson of all the top tier pharmaceutical agencies have engaged in the most mergers and acquisitions. This can be mainly attributed to the unique organisation structure of Johnson and Johnson that is decentralised. Further it has been greatly successful in the same and has kept the revenue stable while also addressing the erratic nature of drug discovery. This has Johnson and Johnson at a unique advantage over its competitors (Cohen et al., 2012; Proverbs, 2005).

E. International dimension – regional or country focus or expansion?

While expansion either regionally or with a country focus has been considered an important strategy to maintain competitive advantage. In this aspect an area of expansion that Johnson and Johnson can look into is merging and taking over the market in regions of Asia such as China. More recently the acquisition of a major medical devices industry in China is one such instance. Similarly the market for pharmaceuticals in a country like India is very high and Johnson and Johnson establishing foot hold in such a rising economic can provide a necessary competitive edge (Jordan & Meyers, 2013).