Eli Lilly in India: Rethinking the joint venture Strategy
It is very interesting how important organizations are formed, and how they decide their goals and visions through simple ideas andunderstandings.
The Ely Lilly Ranbaxy joint venture it’s a very interesting case of how sometimes companies merged to fill the same needs and accomplish their goals through the same process,unfortunately it doesn’t last forever and at some point, the strategy is not as good as it was.
In my opinion there were no significant failures in either side, just different interests at certain point. Thepharmaceutical business it’s a very competitive business in which innovation has to be daily, and new necessities need to be covered. In this case one of the main problems covering this need for themultinationals was the patents, were it wasn’t very easy to compete with generically products at low costs, and that had similar characteristics.
Somehow Ranbaxy and Lilly managed to work in India tocover the Asian and part of the European market, following intelligent strategies were the focused on the employee to produce a magnificent performance and cooperation of the whole distributionchannels. All the logistics became easier and the markets where more reachable producing as a result leadership in India and one of the tops worldwide.
I think that the joint venture could hold onstrongly for more periods, using strategies where Lilly could allow Ranbaxy controlling the Indian market, to made Ranbaxy more independent and at the same time giving importance and credit to the Indianpartners. This could release pressure and allow the Ranbaxy side to come up with new ideas to compete strongly in the Asian market and help Lilly worldwide. Breaking the joint venture would produceimmediately losses in the market in both sides, because of the competition and the global products.
In my opinion saving the joint venture by reorganizing the structure would be the best, and...
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