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What are Sharma's strategic alternatives

Harvard Business Case:
9-698-010
September 2, 2003
Stefan Thomke

Eli Lilly and Company: Drug Development Strategy (A)

Q: What are Sharma's strategic alternatives? Which do you recommend?

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Q: What are Sharma's strategic alternatives? Which do you recommend?

Sharma's strategic alternatives are:

The first strategic alternative is to bring the current migraine compound to market. This has to be done with no further lead optimization. This will reduce the delay of the launch of the product to zero. However, the chance of passing the clinical trials is believed to be 10%. The other advantage is that even though the current product is serotin like it is substantially different from the other products in the market and the company is likely to get first mover advantage. In addition, this introduction is likely to lead to minimum loss of revenue.

The second strategic alternative is to spend additional ...

Solution Summary

The case tries to project the choice before Sharmas a selection of a method of research and development. This is not the case. The strategic choice encompasses the three products, the time of launch, the cost to the company in terms of revenues lost, the market positioning and competitive advantage. Discussion explains more.

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