Topic > Case Analysis Holland Sweetener - 838

SummaryThe Holland Sweetener Company compared to NutraSweet is a competing company in the aspartame industry. Aspartame, a high-intensity, low-calorie sweetener, can be used as a sugar substitute because it is sweeter and does not cause tooth decay, but it has been found to cause other health risks. My analysis will describe the aspartame market and Holland Sweetener Company's strategies to enter the European and Canadian markets. NutraSweet acquires a key player and dominates the market, but once the patent expires in Europe and Canada, Holland Sweetener will quickly enter the market. The analysis answers the question: What should Winfred Vermis, president of HSC, expect from powerful NutraSweet competitors? Will NutraSweet respond to the Holland Sweetener Company with price wars or normal competition once they realize they are trying to become the major supplier in Europe and Canada? The Formation of the Holland Sweetener Company In 1935, Tosoh Corporation of Japan had begun operations as a producer of soda and caustic soda and Dutch State Mines of the Netherlands (DSM), a Netherlands-based multinational life sciences and of materials, when he began work to form the Holland Sweetener Company (HSC). The company was formed as a joint venture between Tosoh and DSM in 1985, to enter the European and Canadian aspartame market once the patent of the NutraSweet Group, Searle's separate operating division and main competitor, expired in 1987. Both the parents brought to life the knowledge and skills that they believed would help the joint venture succeed; Tosoh contributed a patented process for the production of aspartame and DSM provided knowledge of… middle of paper… supposedly already pursued by the $17 million loan received from the European Investment Bank to be used towards the 500 ton aspartame plant project. HSC should have normal competition instead of a price war to truly learn the industry before going directly against NutraSweet in a price war. HSC's most strategic move is to not directly compete with NutraSweet in a price war because, in my opinion, NutraSweet is the expert and HSC is the amateur, in respect HSC has a lot to learn before it can try to enter into war with NutraSweet. Overall, I believe that if HSC attempted to directly compete with NutraSweet in a global market and not just Europe and Canada, it would lose because NutraSweet has already developed brand loyalty and the company ventures into other forms of capital such as signing with Coca- There. and Pepsi.