Company Strengths And Competencies Of Eli Lilly & Company

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Register to read the introduction… Two of their strengths are their brand name and patent protection of intellectual property. These intangible resources allow them sole rights to produce a product and brand name recognition when the patent expires. Lilly is responsible for introducing brand names like Prozac, Axid, Zyprexa, Humalog, ReoPro, Gemzar, and Evista. Another strength of Lilly is that they a leader in product innovation. Their research and development department consists of approximately 8,300 employees or 19% of their total workforce. Throughout the history of the company Lily has consistently been a leader in new products from the first insulin in 1923 to the first genetically engineered drug in 1982. More recently, in the 1990’s Lilly released six new innovative drugs that have been some of the world’s top selling products. Lilly has also been a leader in process innovation. They have consistently been responsible for improving processes to better serve society through mass production of antibiotics and other drugs. Lily was the top ranked pharmaceutical company in the 500 companies designated as the most innovative users of technology by InformationWeek magazine. Their manufacturing competencies have provided medication to many individuals through their broad market coverage. Another strength of Eli Lily & Company is their focus on their core competencies. Lily is strong in their research and development and they have a strong market presence in five specific areas including infectious diseases, cancer, cardiovascular products, endocrinology and neuroscience. In the mid to late 1990’s Lily revamped their structure to focus on these areas. This change in structure indicates that Lily also has the ability to manage strategic change. Finally Lily has Human Resource competencies. Lily has more than 43,000 employees worldwide. They have been named on of the 100 best …show more content…
Traditionally drug company’s only competitors were the generic drug companies and insurance would pay for the cost of the name brand drug. With the rise of Managed Health care and Pharmaceutical Benefits Management (PBM) companies there has been increased competition, pressure to offer discounts, and an increased move toward purchasing generic drugs. While there are still high entry barriers, mainly due to cost in the drug industry, some of these barriers have been removed due to patents expiring. This has allowed for generic drug companies to produce generic versions of the brand name drugs and become the preferred providers for most insurance companies. The decrease in entry barriers and expiration of patents had proven to be costly for companies like Lilly where the average cost to develop a new drug is $800 million. It will become an even greater threat when Lilly’s patent for Prozac expires. Prozac alone accounts for 30% of Lilly’s

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