Advantages of Monopoly Basis of Pharmaceutical Industry
What is monopoly?
Monopoly is a system of business wherein only a specific company or an enterprise becomes the supplier of a particular product. In monopoly marketing system, the seller does not have any competition since he is the sole seller of that particular good without any close substitute option.
Advantages of monopoly system in pharmaceutical industry
●Research and development opportunities
A monopoly pharma company gains a lot of profit which can be used to fund research facilities. This is extremely important in a pharmaceutical industry, since there will be less development of drugs without extensive research. While the development of a drug takes place, there is a high risk of failure. In case of a monopoly, the greater profit give the company confidence to take risks.
●International competition
A domestic pharma company can have monopoly rights in their domestic country, but they face competitiveness in the global market which can prove to be a boost for them in terms of growth and development.
●Scope for a successful business
A pharma company can become a monopoly through hard work and efficient services. Thus it can be said that monopoly is a sign of success instead of inefficiency. There are several top companies of the world which have gained their monopoly status through innovation and hard work.
The pharmaceutical industry is one is where having monopoly rights is highly advantageous for a company. Most of the top PCD pharma companies in India have monopoly rights which is more or less responsible for the high growth rate of the pharmaceutical industry not only in India but all across the world. Many people may argue that there are several disadvantages of monopoly in the pharmaceutical industry, but it is clear that the advantages can outweigh the cons easily.
