Final answer:
Rhone-Poulenc's ability to hire Nobel Prize winners signifies its competitive advantage in the pharmaceutical industry. With substantial investments in R&D, attracting top talent helps the company innovate and compete effectively. Past antitrust issues highlight the industry's competitive and regulatory challenges.
Step-by-step explanation:
Rhone-Poulenc's ability to employ some of the finest minds in the world, including Nobel Prize winners, is an example of a competitive advantage. The pharmaceutical industry requires significant investment in research and development to create new drugs. Rhone-Poulenc, as an international French company engaged in the production and marketing of chemicals and pharmaceuticals, has allocated resources effectively to attract top talent, which in turn fosters innovation and maintains the company's position in a competitive market.
In the 1990s, antitrust regulators prosecuted an international cartel of vitamin manufacturers, which included Rhone-Poulenc, for price-fixing and dividing markets. This historical context illustrates both the competitive nature of the pharmaceutical industry and the potential for anti-competitive behavior. However, pharmaceutical companies also invest heavily in research for new medicines, and their success relies on their ability to develop effective drugs and bring them to market efficiently.