Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 10 April 1995
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https://casecent.re/p/46105
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Abstract
In the mid-1980s, the Holland Sweetener Co (HSC) was facing the decision whether to enter the European and Canadian aspartame markets, following the ending of NutraSweet's patents there. A major question facing HSC was whether NutraSweet would respond to entry in an accommodating, or an aggresive, manner. Thus, NutraSweet might initiate a price war in Europe or Canada as a warning to anyone considering entry into the US market, once its patent expired there in 1992. On the other hand, such a response might simply be viewed as 'water under the bridge' by the time the US market opened up. In that case, NutraSweet might do better opting for a live-and-let-live approach in Europe and Canada. Given the uncertainty surrounding NutraSweet's reaction, HSC had to make its entry decision in a fog. This case explores some aspects of the game between a company that is established in a number of markets and companies that seek to enter those markets.
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Abstract
In the mid-1980s, the Holland Sweetener Co (HSC) was facing the decision whether to enter the European and Canadian aspartame markets, following the ending of NutraSweet's patents there. A major question facing HSC was whether NutraSweet would respond to entry in an accommodating, or an aggresive, manner. Thus, NutraSweet might initiate a price war in Europe or Canada as a warning to anyone considering entry into the US market, once its patent expired there in 1992. On the other hand, such a response might simply be viewed as 'water under the bridge' by the time the US market opened up. In that case, NutraSweet might do better opting for a live-and-let-live approach in Europe and Canada. Given the uncertainty surrounding NutraSweet's reaction, HSC had to make its entry decision in a fog. This case explores some aspects of the game between a company that is established in a number of markets and companies that seek to enter those markets.