Advantages of Monopoly Basis of Pharmaceutical Industry  +91-7206070155

Monopoly is a corporate arrangement in which only one company or entity becomes the supplier of a certain product. The seller in a monopoly marketing system has no competition because he is the single supplier of that particular commodity with no near substitute choice.

Advantages of monopoly system in the pharmaceutical industry

●Research and development opportunities

A monopoly pharmaceutical business makes a lot of money, which it can put towards research facilities. This is critical in the pharmaceutical sector, as drug development will be limited without thorough study. There is a substantial danger of failure during the medication development process. In the case of a monopoly, higher earnings allow the corporation to take more risks.

●International competition

While a domestic pharmaceutical business may have monopoly rights in its own nation, it faces competition in the global market, which can be beneficial in terms of growth and development.

●Scope for a successful business

Through hard labour and efficient services, a pharmaceutical company can acquire a monopoly. As a result, monopoly might be seen as a sign of success rather than inefficiency. Several of the world's most successful organizations have achieved monopoly status via 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.