Eli Lilly Case Analysis

Eli Lilly and Company

Case Analysis

Student Name: ZEHUI ZHENG

Student Number:   999779048

Contents

• Executive Summary
• VRIO Analysis of Eli Lilly
• Motivation of Strategic Alliance

• Leveraging resources and core competence
• Spreading and Reducing Costs
• Learning from Alliance Partners
• Reducing intense competition

• Major Problems of Strategic Alliance
• Solutions of Strategic Alliance

• Office of Alliance Management (OAM)
• Alliance Managers
• Three-dimensional fit analysis

• Recommendations of Eli Lilly’s Strategic Alliance
• Case Summary

Executive Summary

          Eli Lilly & Company is one of the top 20 global pharmaceutical companies, focused on discovering, developing and marketing drugs for neurosciences (Prozac, Zyprexa), diabetes care (Humalog, Humulin) and Oncology (Gemzar). The business is going internationally. They manufacture and distribute their own products through facilities in the U.S and other countries, and sells products in about 138 countries. It is an America-based company that was started in 1876 and there are approximately 46,000 employees across the world.

          This specific case shows that innovation management is crucial to the operation of Eli Lilly. Making strategic alliance has been a key element of Eli Lilly’s strategy for more than a decade, and successful alliance management are essential for Eli Lilly’s ongoing pursuit of development. Eli Lilly had built several successful Alliance, such as Lilly-Alpha partnership as a research alliance, Lilly-Beta partnership as a marketing alliance and Lilly-Gamma partnership as a manufacturing alliance. Eli Lilly’s tradition of strategic alliances with selected partners has played an integral role in creating innovative products, boosting the growth of company and maintains the competitive advantage in the world market.

          There are several motivations that Lilly was motivated to form alliance with other companies, including horizontal and vertical scopes. These motivations of strategic alliance giving rise to the forming of strategic alliance.

          Besides, there are also some major problems of strategic alliance that Eli Lilly might be encountered during the process of alliance. But Lilly had developed solutions for those problems, which established Office of Alliance Management (OAM) and Alliance Managers, moreover developed three-dimensional fit analysis. These solutions of strategic alliance solve the problems clearly and concisely with partners. Furthermore, I provided some recommendations for Lilly to maintain its strategic alliance in order to keep its top position in pharmaceutical global industry.