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1. Did Eli Lilly pursue the right strategy to enter the Indian market?
First of all, Eli Lilly was considered as one of the biggest pharmaceutical corporations in United States area, in addition, their products were sold to so many countries, which are 130 countries counted by 1992. Moreover, in November 1992, Eli Lilly has formally accepted and engaged in the official contract of JV with Ranbaxy. Ranbaxy was running a big business in India, both Eli Lilly and Ranbaxy were doing business under the same industry. Ranbaxy was also one of the biggest manufacturers of drugs by selling in a big quantity and in an affordable price (Celly 2004).
The JV has launched their first drugs, which was human insulin. The product’s ingredient was taken from both Lilly and Ranbaxy creation. However, there were many challenges for the JV. They stated that the biggest task that they encountered is the import taxes and other governing issues in India. As a result, ELR (Eli Lilly Ranbaxy) has decided not to produce a few of their branded product because many other sellers have sold in a really low price (Celly 2004).
India has joined the World Trade Organization in 1995 which purposely to give the permission of patent protection to every pharmaceutical drugs and also to let the foreign firms to invest a hundred percent in Indian market. These amendments will be validated by 2005.
It is obviously seen that both parties in the JV have their own vision and mission regarding to the business. But that doesn’t mean that they cannot succeed, Lilly will give it a shot to make use of the foreign brand and many more in order to succeed this JV. Both of them have assisted each other within this JV. For example, Ranbaxy has got suppliers and also government approvals, whereas Lilly has given Ranbaxy the opportunity to promote its cultural values (Kateregga 2015).
Furthermore, there are also numerous advantages and disadvantage of this JV, such as Ranbaxy is acknowledged as a global firm, and
First of all, Eli Lilly was considered as one of the biggest pharmaceutical corporations in United States area, in addition, their products were sold to so many countries, which are 130 countries counted by 1992. Moreover, in November 1992, Eli Lilly has formally accepted and engaged in the official contract of JV with Ranbaxy. Ranbaxy was running a big business in India, both Eli Lilly and Ranbaxy were doing business under the same industry. Ranbaxy was also one of the biggest manufacturers of drugs by selling in a big quantity and in an affordable price (Celly 2004).
The JV has launched their first drugs, which was human insulin. The product’s ingredient was taken from both Lilly and Ranbaxy creation. However, there were many challenges for the JV. They stated that the biggest task that they encountered is the import taxes and other governing issues in India. As a result, ELR (Eli Lilly Ranbaxy) has decided not to produce a few of their branded product because many other sellers have sold in a really low price (Celly 2004).
India has joined the World Trade Organization in 1995 which purposely to give the permission of patent protection to every pharmaceutical drugs and also to let the foreign firms to invest a hundred percent in Indian market. These amendments will be validated by 2005.
It is obviously seen that both parties in the JV have their own vision and mission regarding to the business. But that doesn’t mean that they cannot succeed, Lilly will give it a shot to make use of the foreign brand and many more in order to succeed this JV. Both of them have assisted each other within this JV. For example, Ranbaxy has got suppliers and also government approvals, whereas Lilly has given Ranbaxy the opportunity to promote its cultural values (Kateregga 2015).
Furthermore, there are also numerous advantages and disadvantage of this JV, such as Ranbaxy is acknowledged as a global firm, and