Johnson & Johnson is a business that deals with consumer healthcare, pharmaceuticals and medical devices and diagnostics. Its major competitors are Procter and Gamble and Novartis in baby care products. The company has brought new products and ideas into society, which has transformed peoples well-being and health. Johnson & Johnson has met and is currently meeting the various concepts of competitive advantage. The concepts have enabled the company to be customer-focused and be among the market leaders (Johnson &Johnson medical devices; diagnostics businesses expanding market leadership with innovative products and customer-focused solutions, 2014).
Six Processes to Maintain Innovation at Johnson & Johnson
Adapt to External Environment Changes.
There has been rising pricing and cost pressures on pharmaceutical drug firms. Johnson & Johnson is one of the affected firms however it has taken up some strategies to reduce the costs. The firm has invested $1.1 billion in research and development due to an increase of product demands and costs of manufacturing. The firm plans to come up with innovative ways to produce products at lower costs thus reducing the cost of manufacturing and operations which may enable Johnson & Johnson to increase its profits. The strategy will also enable Johnson & Johnson to change over the next decade and a half in a better way than it has ever been since the firm began. Today, it has managed to improve its productivity by reducing the size of the managerial bureaucracy and leveraging the human and physical resources thus having cost-effective processes. Thus, the company has managed to adapt to external environmental changes of the costs of operations through productivity improvement.
Be Customer-Driven and Focused.
Johnson & Johnsons products are gentle and safe for use. They have always been the most preferred in the market. The company has ensured that it uses harmless chemicals for its products that have to undergo severe clinical testing before being considered safe for use. The process ensures that the baby care products are of the highest standards. Quality products are customer focused to ensure customer satisfaction.
Have flexible strategies and processes that can meet the needs and diverse requirements of customers, suppliers, distributors, regulators, and stakeholders.
Johnson & Johnson has made flexible processes and strategies that meet the diverse needs of various stakeholders. Their products are satisfactory to the users, and they have been termed as the best globally hence satisfying to the customers. The supervisors and the managers have ensured that employees strive to contribute to the success of the company. There is also a platform where employees offer accurate feedback on job challenges (Catteeuw, Flynn & Vonderhorst, 2007). The employees have therefore found working processes easy to handle thus contributing to the success of Johnson & Johnson. Employees have also being involved in decision-making to enable the company has better ideas, and it also makes the employees feel part of the company.
Be able to quickly respond to the fast pace of change in the environment by recognizing and taking advantage of opportunities that emerge.
Johnson & Johnson can respond to the quick pace of change in the environment by identifying the opportunities that emerge. The world is revolutionizing, and various technologies have come up to ease processes of operations. Johnson & Johnson is one of the firms that has responded to the change. It incorporates a state-of-art technology, world-class research facilities, and sound scientific method. The firm has also made huge investment capacity into its operations, strong and well-equipped research, and design networks. Johnson & Johnson today uses social media platforms to advertise its products or activities as a company to share out information to the public. It has also been regarded as a competitive advantage to Johnson & Johnson because not all of its competitors use technology in communication to the consumers thus any firm that uses it has an advantage over the rest.
Proactively meet and exceed the needs of customers in light of existing competition.
Johnson & Johnson have competitive products in the market. The baby soaps and shampoos are some of the products that are widely used. They have remained to be parents trusted products because they can be cleaned and rinsed off easily hence reduce irritation to the scalp, eyes, and skin unlike some of the competitive products it has in the market. The strategy to offer unique products is a strategy to meet the exceeding needs of consumers in light of existing competition.
Actively engage in R & D to continuously prioritize the development of new products, services, processes, markets, and technologies.
The company has engaged in active research and design to prioritize the development of new markets, products and technologies. Johnson & Johnson has the tranSMART system used in drug research and development data sharing across the company (Recombinant client Johnson & Johnson wins CIO 100 award, 2010). The research data system collects information from different sources and places it into a common repository. Executives, informatics professionals, and physicians manage to access information from a common location thus encouraging hypothesis formation, reduce redundant work and facilitate collaboration in the company. Access to scalable computation resources and disk storage space are some of the benefits the I.T system has brought to Johnson & Johnson.
Johnson & Johnson Meeting the Concepts of Competitive Advantages
The organizational leadership philosophy on innovation.
Johnson & Johnsons guiding philosophy, especially to the leaders, focuses on putting the well-being and needs of the people the company serves first. It ensures that the needs of all stakeholders are considered in the operations hence the success of the firm. The leaders need to drive innovation, develop deep insight into the requirements of communities, markets, and patients.
Activities the organization is actively engaged in to sustain competitive advantage within its industry.
Johnson & Johnson has ensured it provides safe and high-quality products to the consumers. It has also been involved in corporate social responsibilities (CSR) programs such as educating people on healthy environments and taking care of babies.
R&D initiatives the organization is involved in for long-term competitive advantage.
Johnson & Johnson has JLINX, an initiative to nurture and identify earl-stage firms when pursuing research. It also has a tranSMART system used in drug research and development data sharing across the company.
Catteeuw, F., Flynn, E., & Vonderhorst, J. (2007). Employee engagement: Boosting productivity in turbulent times. Organization Development Journal, 25(2), P151.
Johnson & Johnson medical devices & diagnostics businesses expanding market leadership with innovative products and customer-focused solutions. (2014, May 29). News Bites - Pharmaceuticals & Biotechnology
Recombinant client Johnson & Johnson wins CIO 100 award. (2010, Aug 24). Business Wire
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