In 1993, Eli Lilly is preparing to build capacity for the three new pharmaceutical products, which it plans to launch in 1996. Management struggles with decisions about how to add a specialized production facilities or flexible capacity. This question touches on a broad discussion within the company about which strategy to follow for the future making facilities. This case presents two alternatives (flexible and specialized plants), and describes the benefits and costs associated with each. "Hide
by Gary P. Pisano, Sharon Rossi Source: Harvard Business School 19 pages. Publication Date: March 22, 1994. Prod. #: 694074-PDF-ENG