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Eli Lilly &Company

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Eli Lilly &Company
Case 3 :Eli Lilly &company

Question: To continue generating the returns enjoyed by the industry over the past decade, pharmaceutical companies would be forced to rethink how they identify and exploit opportunities to gain a competitive edge in an increasingly complex market ?

In my opinion if a Pharmaceutical company aims to continue generating the returns and gain competitive edge , should conduct Pharmaceutical Industry Analysis which will help to find out opportunities and then should try to match them with its Strengths and finally achieve to competitive benefits through new strategy formulations, so first I would like to bring a summary of strategic issues which Eli Lilly is face to them, second I will describe Eli Lilli external condition, through industry analysis and porters 5 forces ( to analyze external environment), third I try to bring SWOT analysis and SWOT matrix and finally according to the Opportunities, I try to bring some recommendations for strategy formulation which will place Lilly in a much stronger position to achieve and maintain sustainable competitive advantage in the dynamic competitive international pharmaceutical market.

Summary of Key Strategic Issues which Eli Lilli face to them

1)In Eli Lilli Imbalanced portfolio and lagging international sales was the consequence of its dependence on just a few key products. This type of a strategy with a focus on neuroscience drugs such Zyprexa was not well suited to the more cost conscious international regions whose their focus was treatment of disease.

2) Other factors that played against Eli Lilli were the regulations in non-US developed countries on pricing and payment programs for pharmaceutical drugs through national health insurance programs. Due to this fact, Lilly wouldn't have earned as high of a profit margin on its blockbuster drugs, Prozac and Zyprexa, in Europe and Japan as it did in the less price-conscious U.S. market.

3)Eli Lilly's recent decline in

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