Eli Lilly Ranbaxy joint venture

1466 words 6 pages
Executive Summary
The Eli Lilly Ranbaxy joint venture allowed both Eli Lilly and Ranbaxy as separate companies to grow and expand as one venture. The support and reliability that both companies had with one another allowed for a strong business relationship to form which led to the same business strategy vision and goals. This joint venture eliminated trade with other companies for the same thing that one another could share to become one of the largest and most successful pharmaceutical companies in the Indian market. The problem that Eli Lilly Ranbaxy was being exposed to was a plateau of success with a joint venture and the thoughts of separating and selling stakes became an option. The companies together touch every target market
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Did Eli Lilly pursue the right strategy to enter the Indian market?
Eli Lilly and Ranbaxy created a great partnership for two companies that needed on another in the specific time period. They relied on one another to produce, manufacture and sell pharmaceutical products to the Indian market. This market was incredibly difficult to produce and sell products in due to the low patent and intellectual property protection. Products and services were continuously duplicated by companies that would try and imitate a released product without any research and/or development. The reason that many companies did not want to enter India was because their products would be lost in the mix of all the generic models of that same medicine. The Government of India was encouraging local companies to make as much generic product by developing their own processes leading to bulk drug production. Countries that cannot support the production of products to be produced and sold locally and internationally have a difficult time competing in the global marketplace. Companies that try and mimic products can take over the marketplace and knock out companies by selling a similar product for a 1/60th of the price. The joint venture would have to target large pharmaceutical businesses that would trust Eli Lilly Ranbaxy to

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