Eli Lilly and Company: Innovation in Diabetes Care.
Eli Lilly and Company: Innovation in Diabetes Care Eli Lilly and Company has success in produce and sells insulin in the United States in 1923 and in 1995 Eli Lilly has dominated the world insulin market with another company. But Eli Lilly has miss some of its’ opportunity in diabetes care when it trying to sell its’ product to the world.
What went wrong with Eli Lilly during that time? Here are few points. First of all, Lilly has trying hard to improve their product. But as the case mentions when Lilly’s “Match” product come out, it become a rival commodities to Lilly’s own old product. When it comes to product life cycle, it true that company needs to put out new product before the old product become less revenue but in this situation for Eli Lilly is different. Because of the market rate it hold in US diabetes care market is around 80% and the new product will definitely hurt the revenue the old product produce. So Eli Lilly actually decided not to put it on to the market. It was not a clever idea of choosing to thinking of its’ revenue instead of customer need.
And when it comes to asking the customer what they need. Eli Lilly asked the wrong customer. Instead of asking the people who are actually using diabetes care product, Eli Lilly went into doctor. What the doctor wants is totally opposite from what the patient need, the doctor want the customer come to them regularly because that’s the way that doctor earn money from. But patient or customers want to be able to control it by themselves. When Eli Lilly targeted wrong customer it eventually hurt its’ revenue.
Nova is considering the main competitor for Eli Lilly. But both two companies put up similar product into market. They try to put out the newest product in order to attract more customers and gain more profit from it. But does the customer really need those newest products. It becomes the question between should the product be consumers-demand trajectory or technology-performance trajectory. In
What went wrong with Eli Lilly during that time? Here are few points. First of all, Lilly has trying hard to improve their product. But as the case mentions when Lilly’s “Match” product come out, it become a rival commodities to Lilly’s own old product. When it comes to product life cycle, it true that company needs to put out new product before the old product become less revenue but in this situation for Eli Lilly is different. Because of the market rate it hold in US diabetes care market is around 80% and the new product will definitely hurt the revenue the old product produce. So Eli Lilly actually decided not to put it on to the market. It was not a clever idea of choosing to thinking of its’ revenue instead of customer need.
And when it comes to asking the customer what they need. Eli Lilly asked the wrong customer. Instead of asking the people who are actually using diabetes care product, Eli Lilly went into doctor. What the doctor wants is totally opposite from what the patient need, the doctor want the customer come to them regularly because that’s the way that doctor earn money from. But patient or customers want to be able to control it by themselves. When Eli Lilly targeted wrong customer it eventually hurt its’ revenue.
Nova is considering the main competitor for Eli Lilly. But both two companies put up similar product into market. They try to put out the newest product in order to attract more customers and gain more profit from it. But does the customer really need those newest products. It becomes the question between should the product be consumers-demand trajectory or technology-performance trajectory. In