Eli Lilly`S: Innovation

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Eli Lilly and Company: INNOVATION IN DIABETES CARE INTRODUCTION Eli Lilly, the global research-based pharmaceutical company that started up as like many other companies at that time selling sugar-coated pills, fluid extracts, syrups and with hand work constituting the primary method of production to one of the major pharmaceutical company that dominated the industry in the world. Eli Lilly and Company has witnessed a momentous success, and one of them was its dedication to energetically introducing improved methods of production and encouraging development of new products. Given the great success and innovation orientation they have made they continue in the battle for Insulin Global and domestic market share. Moreover we know Lilly has made a series of strategic mistakes that has lead to substantial profit losses such as the investment of $700 million in the new genetically engineered human insulin--Humulin®. THEIR FEILURES They failed to market the new product right, the price was set too low: on realizing the mistake they set out to increase the price quickly more than 30% in two years in US. However, this action wasn't possible in Europe's price controlled countries; clearly, the perceived value and future potential of the product had not been recognized or properly communicated prior to launch. The global market for Insulin hasn't been extensively explored; looking back in history, Lilly should have done a much better job in promoting the new product than they did. And In order to expand the market, Lilly shouldn't just concentrate in North-American market; instead they should have gone for a global vision of marketing strategy. Other mistakes on the product development efforts was that the market research they did wasn’t not very extended; this was a because they thought they didn’t need it because of their market share and brand
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