The managing director of Eli Lilly Insulin Company wants to review the division's strategy regarding the introduction of Humulin (R), a genetically-engineered insulin that reproduces exactly the human hormone. This breakthrough, achieved through a co-operation with Genentech, was introduced to the market in 1982. It affected significantly the level of competition but did not radically improve market share yet. The management of Eli Lilly would like to understand the competitive conditions that explain this outcome.