Holland Sweetener Essay
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 plan their entry into this market.
The low-calorie, high-intensity sweetener market has been dominated by one major player, NutraSweet, with annual sales of $711M and about 80% market share (the total market in 1986 was …show more content…
NutraSweet may also be expected to continue its pursuit of a differentiation strategy to protect its high margins. It could extend its understanding and application of building a strong U.S. brand to Europe and Canada. The benefits of this approach, however, may only be realized after years of significant investment to reduce buyer power and protect price premiums. Scenario Analysis
Scenario 1: Price war As we mentioned above, any new entrant in this industry needs to land either