Stiff Competition means people and organisations need to rise to the challenge, in the pharmaceutical industry Pfizer the drugs company that patented Viagra finds its patent for the drug coming to an end.
Presently the company is using the profits from Viagra to swell its profits, in the UK alone the NHS spends over £40 million pounds on Viagra each year yet on the 21st of June the market will be flooded with generic equivalents of the medication that boast the same performance but with a deflated price.
It will be interesting to see if the brand holds up to increased competition, it also be interesting if patients feel they still need to demand the distinctive branded tablets or accept a plain equivalent costing less than £1 a tablet which is more than a tenth of the price of the original, that’s stiff competition indeed!
When something is more expensive there is the perception that it is better, when we buy branded items we buy something intangible with the item that commands a higher price. Add to brand identity the placebo effect on patients who may doubt nothing other than the original coloured pill will work , and it will be interesting to see how this example plays out with stiff competition on the horizon.
The moral of the story is probably nothing lasts forever, innovation is the key to prolonged success, sooner or later the competition catches up and what goes up must go down.