Eli Lilly and Company is a medicine and drugs manufacturing American pharmaceutical company. The pharmacist and chemist Eli Lilly laid the foundation of the pharma company in 1876. Today, we’ll discuss the SWOT analysis of Eli Lilly; it outlines available strengths and weaknesses; opportunities, and threats that the pharmaceutical company has to face; as a business strategy analysis example company.
Products and services portfolio of Eli Lilly
- Pharmaceutical drugs
- Basaglar Insulin Glargin
- Biosimilar
- Humalog
- Humulin
- Polio Vaccine
Membership and Association of Eli Lilly
- European Federation of Pharmaceutical Industries and Associations (EFPIA)
- Pharmaceutical Research and Manufacturers of America
- American Society of Hematology
- Foundation for the National Institutes of Health (FNIH)
- European Society of Cardiology
Statistical facts and figures of Eli Lilly
- Fortune 500 ranking – 123rd position (2023)
- Annual revenue – 34.12 billion USD (2023)
- Net income – 5.24 billion USD (2023)
- Employees – 43,000
- Asset net worth – 64.01 billion USD (2023)
Competitors of Eli Lilly
- SciClone Pharmaceuticals
- Vivus
- Mannkind Corporation
- Sangamo Therapeutics
- GSK
- Amgen
- Merch & Co
- Pfizer
- Bristol Myers Squibb
- Novartis
The SWOT analysis of Eli Lilly would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Eli Lilly SWOT analysis as a business strategy analysis example company as follows;
Strengths of Eli Lilly
Some of the main internal strengths in the Eli Lilly SWOT analysis example company as business strategy analysis are as follows;
Pioneer
Eli Lilly has the unique competitive edge of being the pioneer pharmaceutical brand in the mass production of polio vaccines and human insulin. The uniqueness, differentiation, and pioneer edge helped the pharmaceutical brand strengthen its brand and market position in the early stages.
Research & Development
The research Eli Lilly achieved the status of pioneering the mass production of the polio vaccine and human insulin due to research and development. According to an estimate, Eli Lilly invested approximately 9.313 billion USD in research and development. It shows the company’s strong commitment to innovation, finding cures, and making human lives better.
Recognized Brand & Network
Eli Lilly is a renowned brand name in the pharmaceutical due to its R&D innovation and pioneer status. The pharmaceutical brand has established a network of distributing its products in roundabout over 125 countries worldwide by employing 43000 employees. The global network and recognized brand name help the company to become the top and leading brand in the pharma industry.
Diversified Portfolio
Eli Lilly has established a well-diversified product portfolio by producing and manufacturing a wide variety of medicines in different categories. It allows the pharma brand to target various segments of the medical customer market with multiple diseases. Some of the main categories of medicines and drugs that the company offers are as follows;
- Osteoporosis
- Depression
- Diabetes
- Cancer
Financial Backing
According to an estimate, the net worth of Eli Lilly’s financial asset is roundabout 64 billion USD in 2023. The strong financial position helps the company to fund and finance various types of medical research projects for the development of the latest pharmaceutical drugs.
Membership & Association
Eli Lilly has been a member of various world research societies and the brand is also an active donor of the medicinal research universities and institutes. Professional membership and association with medical research institutes further strengthen the company’s position in the pharmaceutical industry.
Weaknesses of Eli Lilly
Some of the main internal weaknesses in the Eli Lilly SWOT analysis example company as business strategy analysis are as follows;
Limited Distribution Network
There is no doubt Eli Lilly is operating its pharmaceutical business in over 125 countries across the world. However, the company’s market presence relevant to its competitors is very low. However, it is mainly due to the fact having a limited distribution network and product developmental pipelines; is slowing down the company’s growth rate.
Heavy Reliance On Few Products
Eli Lilly has successfully established a well-diversified portfolio, but the company is heavily relying on a few drugs as its main sources of income. In other words, not all of the company’s products have the leading market share. If their sales suddenly drop, then it would negatively impact the financial position of the company.
Controversy of Discrimination
Eli Lilly faced a federal lawsuit in 2021 for discriminating the older applicants for the retail sales job position and the company preferred the young millennials. The discriminatory lawsuits bring a negative reputation to the company; the brand’s HR department should engage in ethical practices.
Opportunities for Eli Lilly
Some of the main available opportunities in the Eli Lilly SWOT analysis example company as business strategy analysis are as follows;
Digital Technology
The trend of digital healthcare technological devices has been increasing significantly. It could be in the form of monitoring health performance digitally, wearable devices, telemedicine, mobile applications for medicine and checkups, and others. In short, the digital technology has been transforming the pharmaceutical industry.
Market Expansion
The Indian and Chinese market holds significant growth potential. Eli Lilly should consider expanding its business and market in those regional markets and outsourcing its production and manufacturing works from there. It allows the company to amplify its growth rate and market share.
Emerging Areas
Gene therapy is a growing area and requires significant research and development. If the company manages to find the cure for the genetic disorder, then it would be a great payoff.
Precision medicine is the method of customizing the patient’s treatment based on the history of every patient. It allows the company offer to more precise therapeutic treatment to the customers.
Threats to Eli Lilly
Some of the main potential threats in the Eli Lilly SWOT analysis example company as business strategy analysis are as follows;
Illegal Marketing Lawsuit
Eli Lilly accepted the charges of illegal marketing for the sale of Zyprexa and agreed to pay the fine of 1.45 billion USD in 2009. It is the largest ever fine to pay for an individual corporation. However, the illegal marketing and other lawsuits are jeopardizing the company’s reputation are finances.
Competitors
The pharmaceutical industry has become highly competitive in recent years with the growth of many competitors. It has become highly difficult for the pharmaceutical brand Eli Lilly to maintain its market share and remain competitive.
Economy
The global market has been going through an economic recession ever since the pandemic crisis phase in 2022. It has become highly difficult for pharmaceutical brands like Eli Lilly to maintain their price and profitability relevant to the buying power of customers.
Conclusion: Eli Lilly SWOT Analysis Example Company |SWOT Analysis of Eli Lilly |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Eli Lilly; we have realized that Eli Lilly is the world’s leading pharmaceutical brand. If you are learning about Eli Lilly SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
