Drugmakers Find Competition Doesn’t Keep a Lid on Prices

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Drug makers Find Competition Doesn’t Keep a Lid on Prices
For the past one year, the price of Viagra has increased by almost 13 percent mosltly from Pfizer and Eli companies. The two US companies are competing for available markets in the manufacture of erectile dysfunction pills. However, Pfizer and Eli Lilly companies are alleged to set aside their business competition differences and agreed to raise their prices in the effort to benefit maximally. The unfair consumer environment have called for the attention of the laws makers aiming at protecting the consumers from the increased prices
In response to the law maker’s criticism Pfizer and Lilly companies, have argued that the publicly disclosed prices do not anyhow indicate the right cost since they give their employees confidential and personal discounts. Moreover, they claim that they provide financial assistance to people who lack insurance and those who can’t be able to afford to buy the drugs. Additionally, they say that each company makes independent decision to raise the prices and they do not consult each other.
In their book, Bateman and Snells suggest an oriented theoretical approach in dealing with competition in the market. In a very competitive environment, there are five forms of performances, on which any organization beats. Businesses should compete on matters of cost, quality of products produced, creativity and innovation of the workers, speed, and service. When all these dimensions are utilized well, they are most likely to deliver the required value to the consumers.

Thus Pfizer and Lilly Company should adopt these principles so as not to have fair price treatment to the consumer.
In conclusion, in any competitive business, the demand and supply should determine the price of the product. Thus companies should concentrate on making a quality product so that they can influence demand for their products. To prevent unfair pricing, the government should intervene as a way of regulating prices in the market.