Publications
Publications
- January 1993 (Revised April 1995)
- HBS Case Collection
Fog of Business, The
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 U.S. 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 U.S. 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.
Keywords
Risk and Uncertainty; Patents; Competition; Market Entry and Exit; Food and Beverage Industry; Canada; United States; Europe
Citation
Brandenburger, Adam M. "Fog of Business, The." Harvard Business School Case 793-098, January 1993. (Revised April 1995.)