When a pharmaceutical company develops a new medication, it typically applies for a patent to prevent competitors from developing copycat products for several years. Pharmaceutical companies apply for patents to establish
A) an operational excellence macro strategy.
B) a market penetration growth strategy.
C) a sustainable competitive advantage.
D) an efficient supply chain.
E) product efficiency.

Question

Quizplus · Accepted Answer

Pharmaceutical companies apply for patents to establish a sustainable competitive advantage, as it prevents competitors from developing copycat products for a certain period of time, allowing the company to generate significant revenue from the product before competitors can enter the market.

When a Pharmaceutical Company Develops a New Medication, It Typically