Cymbalta Case Analysis

Introduction

Developing of new products are always challenging to companies. This is particularly so because a detailed design and production requires thorough research that consequently leads to successful production and acceptance of a product in its wider market. Challenge is even worse where competition is orchestrated by presence of competing brands. The case of Ely Lily and Company is a perfect example demonstrating how challenging it is to develop a new product in a competitive market.

Identification of the strategic issues and problems

Ely Lily and Company is a pharmaceutical firm reputed for developing antidepressant Prozac. With expiry of its patent approaching, it was time for competing businesses to rip by developing and introducing into market, parallel versions of the drug. As a determined competitor, Ely Lily and Company did not just sit pretty waiting to give in easily to the anticipated competition. After considering various strategy options that would have ensured that the company remained competitive in antidepressant drug market, the company finally settled for development of a new antidepressant. Seemingly, others options must have been found unpromising. Thus on the contrary, the company was preparing itself waiting to remain supreme by developing a better option to Prozac. The new version of Prozac that was being developed was Cymbalta. And although improving Cymbalta was convincingly potential in replacing Prozac superiority as an antidepressant, its success in future development phases was not all that certain. At that particular point, it can be seen that the challenge that Ely Lily and Company was being confronted with required some critical decisions to be made in order to address strategic issues.

From the case, strategic issues that ought to have been deliberated on include: how to ensure that the proposed drug overcome unmet treatment efficiency of existing antidepressant drugs; safety and intoxication issues; and its possibility of emerging as superior to already existing antidepressants. These issues were at the center of interest in making new product competitive. However, making decision on which way to go in developing new product; assuring that the new drug would be superior in the face of beckoning competition; and how to minimize cost of new product development by focusing on trustworthy procedures, characteristically emerged as serious constraints to development of the new product. Despite of these problems, options were available at the disposal of Ely Lily and Company. One of the options was to prove superiority of the new product beyond doubt. Alternatively, the company could have postponed testing of new drug until constraints are put to rest, or resort to fresh approaches in developing the new product.

Analysis and Evaluation

Industry Analysis