Eli Lilly Ranbaxy Case
Autor: Arushi Jain • July 13, 2016 • Case Study • 317 Words (2 Pages) • 972 Views
Eli Lilly in India
As consultants to Ranbaxy we have done the following analysis.
Current Scenario according to
Ranbaxy-
- Acquired knowledge of entering into the international R&D market in pharma.
- Gained knowledge on how to enter into joint ventures.
- Ranbaxy was the top company by sales of Rs 20 bn in 2000.
- Will to expand into foreign markets and incurred losses in investment abroad.
Eli Lilly –
- Realised no future in generics field,
- Gained knowledge on how to tackle Indian culture and the regulatory agencies,
- Had solid foundations of 9 years in Indian Market with established distribution channels.
Options/ evaluation criteria | Ethical (very high importance) | Financial effects | Innovation /Ideas | Ease of entry into Foreign markets | Feasibility of option according to the partner |
1: Continue JV as is | yes | Ranbaxy need Cash, not much added value | Medium benefit | No benefit | High |
2: Sell your stake in JV | Yes if given to eli lilly, if other partners come the fate of employees uncertain- unethical | High benefit | No benefit | Medium benefit | High if for eli lilly, if sold to others eli lily will face problems |
3: Buy other's stake in JV | yes | No benefit | No benefit | No benefit | Would not be allowed |
4: Partially sell | Yes | Medium benefit | No benefit | Medium – low benefit | High |
5: Partially buy | yes | Medium loss | Medium benefit | No benefit | Very low |
6: Do nothing | yes | medium loss | Medium benefit | No | Medium |
7: Do something creative (Expand the JV to foreign markets) | Yes | Medium benefit | High benefit | High benefit | Eli lilly already has good presence in foreign markets, wont like to have Ranbaxy onboard- Low |
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