Strategic management Case: Bitter Competition

Discussion Questions1. How should Vermijs expect NutraSweet to respond to the Holland Sweetener Company?sentry into the European and Canadian aspartame markets?NutraSweet was able to maintain his worldwide monopoly position because it was secured by two key patents on aspartame in the Canadian and European market. But in 1987, NutraSweet?s patents were due to expire so HSC essentialed to enter the market. During the secured times of NutraSweet, the play a presbyopic could create advantages to hold dear his market position.

Those advantages:-The two key patents, the ?use? patent obtained in 1970 and the ?blend? patent in 1973, so nobody could sword the aspartame or use it.

-Economies of scale, cost advantages (ex. By 1992, NutraSweet would be proclaiming that it had weakened its manufacturing costs by 70% over the previous decade) and susceptibility who were created over time.

-Brand recognition by the clients who were familiar with the product, by 1986, the participation was claiming that 98% of American consumers recognized its logo.

-NutraSweet knows already how the cookie crumbles on that market and could sold aspartame directly to major buyers such as Coke and Pepsi.

Vermijs knows that the patents will disappear but also that his company doesn?t have the other advantages of NutraSweet. So Vermijs expectations should be that NutraSweet is dismission to protect his other advantages and even try to improve them.



exactly by doing that, NutraSweet could protect his position on the market for the long terms.

2. Specifically, how should Vermijs appreciate the relative likelihood of the two scenarios?price fight and normal challenger?he has in mind?Vermijs should assess the likelihood for a price war bigger than for a normal competition because NutraSweet not going to give his pucka market position away that easy. A normal competition will cost to many market shares for NutraSweet. NutraSweet is in a...

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