Eli Lilly and Company: Innovation in Diabetes Care Essay

Eli Lilly and Company has success in produce and sells insulin in the United States in 1923 and in 1995 Eli Lilly has prevail the world insulin market with an other company. But Eli Lilly has miss some of its opportunity in diabetes c atomic number 18 when it exhausting to sell its harvest to the world. What went wrong with Eli Lilly during that time? present are few points. First of all, Lilly has trying hard to improve their product. But as the case mentions when Lillys Match product come out, it become a rival commodities to Lillys own middle-aged product. When it comes to product life cycle, it true that company needs to put out impudent product before the old product become slight revenue but in this situation for Eli Lilly is different. Beca using up of the market rate it hold in US diabetes care market is almost 80% and the new product will definitely hurt the revenue the old product produce.So Eli Lilly actually decided not to put it on to the market. It was not a clev er idea of choosing to thinking of its revenue instead of customer need. And when it comes to asking the customer what they need. Eli Lilly asked the wrong customer. Instead of asking the people who are actually using diabetes care product, Eli Lilly went into posit. What the doctor wants is totally opposite from what the patient need, the doctor want the customer come to them regularly because thats the way that doctor earn money from. But patient or customers want to be able to control it by themselves. When Eli Lilly tar contained wrong customer it eventually hurt its revenue. Nova is considering the of import competitor for Eli Lilly.But both two companies put up similar product into market. They try to put out the newest product in order to describe more customers and gain more profit from it. But does the customer really need those newest products. It becomes the question between should the product be consumers-demand trajectory or technology-performance trajectory. In thi s case, the answer would probably consumers-demand trajectory. Even though two companies put out good product but the customer used to the product they already have. And the customer are sensitive to the price since those products are using only few times and need to be change all the time.Even though at that place are some parts that Eli Lilly fail on it but it try hard to understand what their customer really need. Eli Lilly found out thatcustomer would involuntary to use their new product if they did some change to it such as more easy for customers to using new product or using other technology instead of need to inject. And more important is that Eli Lilly found out that most of their customers dont have enough of information about diabetes care. So Eli Lilly set up an Controlled Diabetes Services program (CDS) which educating people and building a community of patients the value of their insulin therapy.I think Eli Lilly made a good finding about setting up CDS which can in directly understand what their customers need and allow more people have more opportunity to get to sleep together their product and use their product. Focusing on know their customer and educating their customer will let more and more people know their new product and form a habit of using their new product. If CDS successfully then Eli Lilly new product such as Match and Insulin pens will have less problem when it sales on the market.Instead of keep on compete with similar product on the market, Eli Lilly should look for new opportunities. Eli Lilly should ask their customers what their value for the product, how they use it to find out the need for customer. Also Eli Lilly need to protect their current market. In pharmaceutical industry, once you lost a customer, it will be harder to get that customer back. When customers change to other medicine, it will take customer time to get used to the new medicine and once customer used to the new medicine. They will gain royal to it bec ause of changing cost and troubles it might occur.Even Eli Lilly have miss some opportunities in diabetes care market but its trying to using the resources and new product to regain their advantage to the diabetes care market for example the CDS program will definitely gain revenue, new customer and splay new market for it. But beside CDS program, it would have to put up more products. And I do think that compare to technology-performance trajectory, Eli Lilly should go with consumers-demand trajectory. Since of the technology-performance trajectory competitive is tender and it could not earn more profit from it. By changing to consumers-demand trajectory will give it more choose and opportunities.