Harvard Business School 9-794-079 Rev. November 13‚ 2000 Bitter Competition: The Holland Sweetener Company versus NutraSweet (A) In late 1986‚ the Holland Sweetener Company (HSC)‚ based in Maastricht‚ the Netherlands‚ was preparing to enter the European and Canadian aspartame markets. Aspartame‚ a low-calorie‚ high-intensity sweetener‚ had been discovered in 1965 by G.D. Searle & Co.‚ a U.S. pharmaceuticals company. After having secured a number of patents on its discovery‚ Searle had gone on to
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Bitter Competition: The Holland Sweetener Company versus NutraSweet Case Facts The low-calorie‚ high-intensity sweetener dominated by NutraSweet‚ the operating entity of G.D.Searle & Co. NutraSweet had recorded sales of $711 million in 1986. NutraSweet has monopoly in the market owing to the patents which are about to expire in 1987 in the European and Canadian markets The Holland Sweetener Company (HSC)‚ a joint venture between Tosoh Corporation and DSM‚ preparing to enter these markets with low
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Introduction The Holland Sweetener Company (HSC) is planning to enter the low-calorie‚ high-intensity sweetener market which is currently dominated by NutraSweet. Below we first analyze our target industry. Next we look at what kind of response should HSC expect from NutraSweet upon its entry into this market. We will also analyze few likely scenarios that could play out and we will try to estimate the likelihood of each scenario. Based on our analysis‚ we will give a recommendation for HSC to
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Competition: The Holland Sweetener Co. vs. NutraSweet (A) 1. How should Vermijs expect NutraSweet to respond in the Holland Sweetener Company’s entry into the European and Canadian aspartame markets? Vermijs could expect two responses from NutraSweet: try to “save” its monopoly by fighting and low the price and start a price-war with HSC; or accept the entrant and its pricing and finally share the market. With the acquisition of Searle in the summer 1985 by the giant Monsanto‚ NutraSweet became
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27-Feb Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (A) (HBS 9-794-079) 1. How should Vermijs expect NutraSweet to respond to the Holland Sweetener Company’s entry into the European and Canadian aspartame markets? Ans: 1. NutraSweet had a very high Cost of Goods Sold in producing the Aspartame. So it was not a wise move for NutraSweet goes for Price war with Holland Sweetener Company‚ which might possibly results in a negative gain on the product. 2. Even though price war is
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Nutrasweet’s Bitter Fight By EBEN SHAPIRO Published: November 19‚ 1989 SIGN IN TO E-MAIL PRINT For a company with such a sweet product‚ the Nutrasweet Company plays a tough game of corporate hardball. Under the mantle of patent protection‚ the inventor of aspartame has made hundreds of millions of dollars selling the low-calorie sweetener. Now those patents are beginning to expire‚ opening the door to competitors. But the company has quickly established itself as a formidable defender of
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| |Date: |Jan 20‚ 2013 | Case Memo Bitter Competition: The Holland Sweetener Company versus NutraSweet - 1. How should Vermijs expect NutraSweet to respond to the Holland Sweetener Company’s entry into the European and Canadian aspartame markets? (1) Baseline: Product: aspartame was a strong substitute of saccharin with better flavor and low calories‚ especially
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Bitter Competition: The Holland Sweetner Company vs. NutraSweet (A) Jon Bain-Chekal Introduction: The worldwide aspartame market has enjoyed patent protected financial prosperity since the early 1980’s. In 1986 the world demand for aspartame was 5‚730 tons annually with future projected world demand reaching 10‚000 tons annually‚ a 75% increase over 1986 demand. The Monsanto Corporation‚ the current owner of the rights to manufacture aspartame‚ under the brand name NutraSweet (NS)‚ reported 1986 sales
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Greater China Market or not we decided to approach the case with a SWOT analysis. Strengths NutraSweet is an artificial sweetener that is one of the most recognized brand names in the United States and in the world. NutraSweet’s earnings per share is $ 6.36 and with huge capitalization and investments in diverse products. Stacey has the approved budget of $ 500‚000 to market NutraSweet in China. NutraSweet has the flexibility on how to position their product in terms of functionality‚ or either as
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few reasons for Nutrasweet to be afraid of the entrance of the Holland Sweetener Company (HSC) which would drive them into a price war with each other. For Nutrasweet‚ the issues I will bring up are applicable to any competing company entering the market under these circumstances. The first issue that Nutrasweet faces is the expiration of its patents. While Nutrasweet got good penetration into the market via its patents‚ when HSC looked to enter the market the patents that Nutrasweet held were coming
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