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Management

Name

Institution
Running head: MANAGEMENT 2

Management

Abstract

Currently, businesses operate in an increasingly fluctuating environment due to globalization,

marketplace rivalry, and rapid fluctuations in scientific elucidations and approaches, increasing

difficulties with respects to projecting and controlling risks, together with emerging business

pressures in the market. However, the two big market leaders, Pharma Pfizer and Eli wanted to

secure huge profits through the launching of two distinct products with insulin for almost a

decade separately. Nonetheless, their two products, Exubera and Humulin had a humble sluggish

beginning as well as eventual acceptance in the market. It is against this background that

necessitates this paper to various ways that the went wrong as well as numerous techniques

through which a successful market research could be conducted before the launch of a new

product in the market.

Introduction

Notably, Eli Lilly was among the market leaders during the late 90s who were

dominating the market with present disinfected port insulin besides their product remained

flourishing. Nonetheless, the organization fingered out that there was a need for the introduction

of pure and refined insulin in the market. Considerably, Eli Lilly established Humulin that usages

bio to bring about human insulin (Dubois et al., 2014, 619). Apparently, both the patient, as well

as the physicians, did not deliberate for the established of such greater products over which a

business advertised Humulin to remain. Therefore, they went ahead to institute products which

were irrelevant in the market since there was no demand for it to be introduced.
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It is imperative to note that companies mostly fail during the institutions of new products

in the market since they contemplate more on what technology would be able to perform and not

what customers would want to purchase. Moreover, the management of Lilly acknowledged that

there no actual market demand for the establishment of the superior Humulin during the period

that was being launched to the market (Dubois et al., 2014, 627). It is also necessary to point out

that the market remained not entirely unhappy with extremely refined pork insulin. After almost

10 years, Exubera was launched by Pfizer with the intention of bringing inhalable insulin into the

market to exploit in the entire new delivery techniques of insulin. Pfizer has a strong believed

that patients who have diabetes required an option with regards to the needle centered injections

hence assuming that Exubera would emerge superior product 3 years after its launch in the

market.

Analysis

Considerably, it is established that three primary themes prompted failure of Pfizer as

well as Eli Lilly with respect to the launch of insulin drugs. Among it is poor sales plans that

were developed by the two companies. The other concerns failure of the company to provide

what the customers wanted in the market, and lastly is that both parties did not establish proper

measures to securing the market before launching the insulin drugs in the market respectively

(Ryman et al., 2014, 253).

a. Poor Sales Plans

It is deliberated that both Pfizer and Eli Lilly were the main competitors across the

entire pharmaceutical industry. However, the two companies were not able to efficiently produce

and market their products to obligate sharp improvement across the entire insulin market (Dubois
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et al., 2014, 626). Furthermore, it is indicated that Eli Lilly controlled about 80% of the insulin

market share, but then they did not consider developing products that were greatly demanded in

the market, for instance, insulin pens, due to advance risks of cannibalization. Moreover, Eli

Lilly opted to safeguard their market portion through aiming at measures that would facilitate the

establishment of new products in the market instead of concentrating on what clients' demands in

the market (Dubois et al., 2014, 621). On the other hand, Pfizer admitted that having inhalable

insulin, Exubera, could be a blockbuster drug, therefore, it would significantly result in changing

the manner in which patients consume their insulin.

b. Poor market analysis

It is established that both Eli Lilly and Pfizer did not perform thorough market analysis

with regards to what the customers required before instituting new product development.

Moreover, it is apparent that what the two leading companies in the pharmaceutical industry

focused did not contemplate the demands from the customers (Ryman et al., 2014, 259). This

could be attributed to lack of proper market research and development in the two companies

since the superior products that they brought to the market were not related to the requirements

of the customers.

c. Unnecessary competition between the two companies.

Since Pfizer and Eli Lilly were the primary market leaders in the pharmaceutical industry,

they did not establish proper reason that facilitates their competitions amongst themselves.

Accordingly, they contemplate to focusing more on competition instead of serving the market

with the products that they needed (Ryman et al., 2014, 255). It is evident that the launching of

the respective insulin products was not well informed by the market research and that the
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industry greatly relied on safeguarding their market share position, therefore, failing to

acknowledge the demands of the customers in the industry.

Recommendations

The success of a business depends on the measures undertaken to safeguard the needs of

their customers. In regards, companies should focus more on their resources in carrying out

thorough market research to establish exactly the requirements of the customers before

developing new products in the market. Furthermore, companies should relatively avoid

unnecessary competitions amongst themselves to ensure that they serve well their customers

through institutions of close links between the company and their clients. The superior

introduction insulin in the market left the customers reluctant to accepting to use them given that

they felt that the product was not in any way going to solve their problems. Therefore, the

researcher recommends that companies should only develop products to aid in providing a

solution to the existing problems that customers are going through in the market they operate.
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References

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(2014). Symptom onset in autosomal dominant Alzheimer disease A systematic review

and meta-analysis. Neurology, 83(3), 253-260.