Correspondence: Graham Leask, Economics & Strategy Group Aston Business School Aston University Birmingham B4 7ET, UK. Tel: +44 121 204 3150; Fax: +44 121 204 3306; e-mail: g.leask@aston.ac.uk

¹is a member of the Economics and Strategy group at Aston University in Birmingham. Originally trained as a Zoologist, he studied statistics and experimental design at Imperial College, London, before joining ICI as a research scientist with specific responsibility for field trials and statistics liaison. He joined the Pharmaceutical Industry in 1982 where he spent 20 years in sales and marketing during which time he was head of the Pharmaceuticals division for Roche UK and Strategic Planning Director for Astra Pharmaceuticals; in which capacity he gained practical working experience in the world's major pharmaceutical markets, including both the US and Japan. This experience led to an interest in healthcare reform, a subject on which he has published a number of articles and booklets. He gained his PhD in 'Competitive Strategy in Pharmaceuticals' from Cranfield University and now actively researches the measurement and implications of strategic choice on corporate valuation, competitive position and return on investment, primarily, but not exclusively, within the Pharmaceutical and Healthcare industries. Research tempered by practical consulting experience gained in assisting a variety of companies to measure their promotional effects, calculate return on investment and make rational strategic choices.

Received 28 January 2006; Revised 28 January 2006.

Abstract

This paper looks selectively at strategic group theory and seeks to explore the benefits and limitations of modern strategic group analysis within the context of practical strategy making in the pharmaceutical industry. The rise and fall of strategic group research is reviewed and suggestions advanced as to the reasons why strategic group research suffered criticism and frequently produced conflicting results. The paper concludes that strategic group research offers a valuable way to classify firms by their strategy and provides some suggestions as to how industry strategists may benefit from strategic group analysis and avoid the pitfalls exposed by previous research.