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Capital expenditure was $38m in 1986R&D $25m.
Access to distribution High. CC and Pepsi were locked into contracts
Absolute Cost advantages High. In 1992 Nutrisweet had cut it's production costs by 70% over the past decade
Proprietary learning curve High.
Access to inputs Medium. Inputs could be substituted.
Proprietary low cost product design High. In 1992 Nutrisweet had cut it's production costs by 70% over the past decade
Government Policy Medium
Winfried Vermis therefore could expect a price war. Nutrisweet would want to signal to HSC and other companies that entering this market would require deep pockets...
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