Johnson & Johnson competitive Analysis Report 2022

Johnson & Johnson competitive analysis
Name
Course

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Executive summary
This report provides an analysis of the macro-environment of the US pharmaceutical industry by
using the PESTLE analysis. Also, it analyzes the market competitiveness by using the five forces
model to show the level of competitiveness of the market in which Johnson & Johnson operates.
In addition, the competitive advantage, strategy and resources and capabilities. The last section
provides a self-reflection of the studied materials in terms of developing self-skills.

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Table of Contents
Introduction....................................................................................................................................3
Part 1: A PESTLE analysis of the US pharmaceutical industry...............................................3
Part 2: Analysis of the industry competitiveness........................................................................5
Part 3: Johnson & Johnson competitiveness...............................................................................8
Part 4: Self reflection...................................................................................................................14
Conclusions...................................................................................................................................15
References......................................................................................................................................16

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Introduction
The US pharmaceutical industry witnesses a significant growth rate. The main aim of the public
policy is to develop the overall health of the American citizens and at the same provide drugs at
affordable prices. The industry business has sustained for decades of increasing growth and
profits. Business organizations are required to adapt to the external environment to survive
(Cognizant, 2011; IFPMA, 2017).
Johnson & Johnson is considered among the largest companies not only in the US but also across
the globe. The company has to face a highly competitive market and adapt to the external
environment changes (Johnson & Johnson, 2018a).
The following section analyses the macro environment, the market competitiveness in which
Johnson & Johnson operates and its competitive advantage and performance contribution to
value creation.
Part 1: A PESTLE analysis of the US pharmaceutical industry
The increasing prices of drugs in the US are considered to be part of the global rising skepticism.
In the US, the industry faces intense pressure that could be analyses according to PESTEL as
discussed by Miller (2019).
 Political:
The pharmaceutical companies face tough global security policies due to the pressure on drug
prices. Margins used to be low for several past years and the pressure lead to losses for drug
companies including Johnson and Johnson. Political pressures are increasing in the US market,
the matter that led the manufacturers, distributors and investors to consider the risk of the
political pressure among the causes of losses.