Orphagenix,a small biotech firm,avoids head-to-head competition with large pharmaceutical companies by developing orphan drugs to target diseases that affect fewer than 200,000 people.This is an example of which of Porter's generic strategies?
A) differentiation
B) cost leadership
C) differentiation focus
D) competitive advantage
E) cost focus

Question

Quizplus · Accepted Answer

Orphagenix is using a differentiation focus strategy, which involves targeting a specific market niche with unique and specialized products. In this case, the market niche is rare diseases affecting fewer than 200,000 people. This allows Orphagenix to avoid head-to-head competition with larger pharmaceutical companies who may not be interested in developing drugs for such a small market.

Orphagenix,a Small Biotech Firm,avoids Head-To-Head Competition with Large Pharmaceutical Companies