What pricing approach does Watson pharmaceuticals use?

Answer 1

One of the critical elements of competition pressure is the price. Innovation and advertising expenses contribute to the high prices of generic pharmaceuticals. Although the insurance plans cover many prescriptions, the pharmaceutical companies are affected by the price the customers are willing to pay for similar goods; although premium price should be based on proven efficiency of a product or name brand. Even though medications are essential for a healthy life, buyers are price sensitive. When considering the purchase of a medication, consumers will pay attention to the price difference between products of the same category and with the same characteristics.

To deal with competition, Watson Pharmaceutical has developed a niche strategy aimed at serving the needs of clients in urology and women's health. By manufacturing, promoting, and selling products in two narrow niches, Watson has an opportunity to focus its research and development activities more efficient. Striving to gain leadership in urology and women's health pharmaceuticals, Watson can compete effectively with other manufacturers, which aim to cover a broader product range. Thus Watson Pharmaceutical's strategy is efficient to deal with competition pressures. Narrow niche provides a more targeted distribution of available sources both human and financial.