RSM490 Case 2 Yiseul Oh 
RSM490 – International Business
Eli Lilly and Company Case Analysis
Yiseul Oh (9999090000$)
Executive Summary
Strategic alliances are defined are forms of contract-based cooperation between from different countries and has became one of the most important and wide-spread phenomena in the business world during the 1980s (Das, 2000). Successful alliances have proven to bring many beneficial outcomes to both parties, through its ability to enable organizations with distinctive competitive advantages operate in the global context with ease (Das, 1999). Eli Lilly and
Company has seen a great success through its top-tier alliance management strategies, reaping benefits of economies of scale, quick and easy access to knowledge and markets, and reduction in costs and risks, all contributing to their increased influence over the industry as an innovative leader. At the core of Lilly’s long-term strategy is its heavy focus on growth by innovation, where expanding the internal capabilities through external partnerships was viewed as an integral part of their operations. Through the establishment of Office of Alliance Management (OAM),
Lilly has invested significant resources to building and maintaining a quality systematic approach to managing its partnerships. This strategic focus has earned them a leading position, by subduing instability and risks inherent in the pharmaceutical industry and in turn extrapolating its core competencies. However, there still remains some concerns around OAM and its future structure that will impact the sustainability of Lilly. In this paper, I will explore key drivers of successful strategic alliances as well as the risk and problems as seen in through
Lilly’s past alliances which will ultimately help us identify what the future steps are for Lilly to remain competitive and innovate further with its alliances.
Background
Eli and Company was established in 1999, with headquarters in Indiana as a global research-based pharmaceutical
Eli Lilly and Company Case Analysis
Yiseul Oh (9999090000$)
Executive Summary
Strategic alliances are defined are forms of contract-based cooperation between from different countries and has became one of the most important and wide-spread phenomena in the business world during the 1980s (Das, 2000). Successful alliances have proven to bring many beneficial outcomes to both parties, through its ability to enable organizations with distinctive competitive advantages operate in the global context with ease (Das, 1999). Eli Lilly and
Company has seen a great success through its top-tier alliance management strategies, reaping benefits of economies of scale, quick and easy access to knowledge and markets, and reduction in costs and risks, all contributing to their increased influence over the industry as an innovative leader. At the core of Lilly’s long-term strategy is its heavy focus on growth by innovation, where expanding the internal capabilities through external partnerships was viewed as an integral part of their operations. Through the establishment of Office of Alliance Management (OAM),
Lilly has invested significant resources to building and maintaining a quality systematic approach to managing its partnerships. This strategic focus has earned them a leading position, by subduing instability and risks inherent in the pharmaceutical industry and in turn extrapolating its core competencies. However, there still remains some concerns around OAM and its future structure that will impact the sustainability of Lilly. In this paper, I will explore key drivers of successful strategic alliances as well as the risk and problems as seen in through
Lilly’s past alliances which will ultimately help us identify what the future steps are for Lilly to remain competitive and innovate further with its alliances.
Background
Eli and Company was established in 1999, with headquarters in Indiana as a global research-based pharmaceutical
References: Das, T.K. and Teng, Bing-Sheng (2000) “Instabilities of Strategic Alliances: An Internal Tensions Perspective.” Organization Science, Vol 11, No 1, 77-101. Das, T.K. and Teng, Bing-Sheng (1999) “Managing Risks in Strategic Alliances.” The Academy of Management Executive, Vol. 13, No4, 50-62. Datamonitor (2010) “Eli Lilly and Company: Company Profile”. Eli Lilly&Company SWOT Analysis (April 2010): 1-11 Dhanaraj, C., Lyles, M., and Lai, Y. (2007). “Innovation Without Walls: Alliance Management at Eli Lilly and Company”. Ivey School of Business. Porter, M. and Fuller, M. (1986) Coalitions and Global Strategy. In M. Porter (ed.), Competition in Global Industries. Boston, Mass: Harvard Business School Press, 315-43.