A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do a joint venture for the acquisition and involves a major automobile giant to fund the deal. After a rocky start, the companies now have a strong market position and generate good profits. How would you characterize this company's strategy?

Question

Quizplus · Accepted Answer

The strategy of acquiring a manufacturer of rare specialty drugs and involving a major automobile giant to fund the deal was initially risky due to the pharmaceutical giant's falling share prices and deficit. However, the joint venture proved to be successful, leading to strong market position and good profits. This indicates that the strategy ultimately passed the performance, competitive advantage, and fit tests. As a result, it can be characterized as a winning strategy.

A Pharmaceutical Giant Acquires a Manufacturer of Rare Specialty Drugs