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Case Analysis

HBS: 9-507-044, July 30. 2008

Eli Lilly: Developing Cymbalta
By Elie Ofek and Ron Laufer

1: Identification of the strategic issues and problems: A clear statement as to the underlying problem facing the organization. Specify the constraints and options available to the organization.

2: Analysis and evaluation: Assessment of industry, market, buyer behavior and organization. Basically a focus on assessment and interpretation of the facts, qualitative and quantitative data and management views.

3: Discuss the three alternative courses of actions provided by Lilly with pros and cons analysis for each alternative course.

4: Recommendations from the chosen from the alternative courses and be sure they are realistic given case situation.

Solution Preview

The response addresses the queries posted in 1037 words with references.

//The given discussion is based on Eli Lilly, which is a pharmaceutical company. In the initial section of the discussion paper, there have been analyzed the strategic issues and problems of the company under the same heading. With such an analysis, the underlying problem of the organization can be understood effectively.//

Identification of the strategic issues and problems:

Since the inception of its business, Eli Lilly achieved tremendous success due to the provision of effective drugs for the treatment of depression. Later, after two decades of its business success, the company experienced the major problem of downward product sales. The company gained major success due to the sale of Prozac. In the year 1990, several substitute products of Prozac namely Celexa, Zoloft, and Paxil were introduced in the market which had cut the market of Lilly. The problem of the company is stated as downward falling in annual sales, due to shared market by competitors through the provision of effective substitutes.

For the solution of this problem, there are several options, as well as, constraints pertaining to the company. The main constraint of the company is specific treatment of its drugs. Less capital availability for clinical trials of drugs and time consuming R&D process are the major restrictions. This problem can be solved by the firm, by introducing new products with low price and better quality and improvement in the R&D process for one of its drug named Cymbalta, which is having positive market response.

//In the next section of the discussion paper, analysis and evaluation of ...

Solution Summary

The response addresses the queries posted in 1037 words with references.