Question

Strategic groups typically follow different business strategies. In the pharmaceutical example in this case, the high-risk, high-return strategy of the proprietary group would be characterized as

Multiple Choice
a.related diversification.
b.nonmarket strategy.
c.cost-leadership.
d.differentiation.
e.targeted cost-leadership.

Answer 1

The high-risk, high-return strategy adopted by proprietary groups in pharmaceuticals is characterized as differentiation, which involves unique product offerings through significant R&D investments.

Step-by-step explanation:

The high-risk, high-return strategy of the proprietary group in the pharmaceutical industry would be characterized as differentiation. This strategy focuses on developing unique products and services that offer significant value to customers and stand out in the marketplace.

Firms that adopt a differentiation strategy often invest heavily in research and development (R&D) to bring innovative and proprietary drugs to market, which can lead to higher returns but also involves greater risk.