Executive Summary The Eli Lilly Ranbaxy joint venture allowed both Eli Lilly and Ranbaxy as separate companies to grow and expand as one venture. The support and reliability that both companies had with one another allowed for a strong business relationship to form which led to the same business strategy vision and goals. This joint venture eliminated trade with other companies for the same thing that one another could share to become one of the largest and most successful pharmaceutical companies
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ELI LILLY IN INDIA RETHINKING THE JOINT VENTURE Kishore – 01 STRATEGY Abhay Abhishek Kunal – 05 Anil Kumar Jadli – 11 J.Harish – 25 Khushal Malik – 28 Sharad Singh – 49 PHARMACEUTICAL INDUSTRY – Global Trend • • • • Mainly concentrated in the United States‚ Europe‚ and Japan Developing a drug from discovery to launch took 10 to 12 years. Cost of development of drug is between $500-$800 million. Drugs were strictly controlled by government agencies: o Food and Drug Administration (FDA) – USA‚
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Establishing an international joint venture can result in substantial gains but can also result in great costs. Joint ventures between companies in different countries can enhance the companies’ experience in the global business market. It can be a potential gateway to possible business deals and endeavors for future profits. Though there are many benefits in establishing an international joint venture it can come with many stipulations. If a company does not do the research or evaluate all possibilities
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Question1: Did Eli Lilly pursue the right strategy to enter the Indian market? In 1993 Eli Lilly‚ one of the leading pharmaceutical firms in the USA‚ started a joint venture in India with the leading Indian company Ranbaxy. The decision was dictated by the conditions of the US market and opportunities of the Indian market. Costlier manufacturing practices due to strict governmental control‚ soaring prices in 1990s‚ invasion of cheap generics to the USA market as opposed to low costs in India and
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had a huge market. Lilly could expand the potential opportunities and got profits in India. In addition‚ foreign direct investment was encouraged by increasing the maximum limit of foreign ownership to 51 per cent (from 40 percent) in the drugs and pharmaceutical industry. (Political strategy was different from important substitution to an export-driven economy.) 2. Was deciding to partner wrong? Is partnership a good or bad thing? No‚ deciding to partner was not wrong. Lilly was a name that most
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Eli Lilly in India: Rethinking the Joint Venture Strategy 1. What Decisions or Actions need to be taken? For Luc Bonnard‚ the vice chairman‚ board of directors of Schindler Holdings Ltd‚ the decision to make was to allow Silvio Napoli‚ the Indian country manager to continue managing after 8 months of operations without installing a single elevator. More importantly Silvio needs to decide whether to stick with his business plan that he wrote in Switzerland or come up with a new business plan
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class. That was a huge potential market for Eli Lilly and Company. As the cost of health-care increased in developed countries in the 1990s‚ chose India was a good choice for a international company like Eli and Lilly. Especially could uses India as trade route to export products to Russia‚ so choose India had a lot of advantages. 2. Was deciding to partner wrong? Is partnership a good or bad thing? It was not wrong to be a partner with Ranbaxy. Ranbaxy was the leading domestic pharmaceutical
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Competing through Strategy Case: Eli Lilly in India: Rethinking the Joint Ventures Strategy I. Brief Summary Global pharmaceuticals had presence in India since early 80’s and it was not until 1993 that Eli Lilly International decided to establish a Joint Venture with India’s second largest laboratory and exporter‚ Ranbaxy. This move happened in a very challenging context as both companies have very different profiles and backgrounds. The main differential characteristic was the nature
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Individually-prepared case analysis of a two case‚ which will be selected by students from among those done in class. Students can select the cases of their choice‚ as suits their schedule and interest area(s). Case analyses will be handed-in at the beginning of class. The case write-up should be no more than ten pages (double-spaced‚ 12-point Arial font) in length‚ with a maximum of seven exhibits. The student should write the case assignment from the perspective of the main character in the
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consists of two major pharmaceutical companies that joint to collaborate their research and pharmaceutical technologies to start a joint venture in India. Both have valuable resources that have benefited both companies during the joint venture. Now both are questioning if there is still any value in maintaining the joint venture in India and will be deciding what will be the best route to take. Ranbaxy Laboratories wants to be bought out‚ but Eli Lilly is worried of the financial implications of such
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