As a deterrence action, at the expiration of the Nutrasweet patents, Monsanto:
A)Prepared a legal battle to fight against firms which would sell similar products under other names
B)Invested heavily in excess production capacity in generic aspartame
C)Enhanced its product quality to create a differentiation strategy and customer loyalty
D)Was preparing new products in related areas and had accepted sharing the market for Nutrasweet

Question

Quizplus · Accepted Answer

Investing heavily in excess production capacity in generic aspartame would enable Monsanto to flood the market with their own aspartame product, making it difficult for competitors to enter the market and reducing the threat of competition. This is a deterrence action as it aims to discourage other firms from entering the market by making it difficult for them to compete.

As a Deterrence Action, at the Expiration of the Nutrasweet