Market Leader Intermediate 3rd Edition

[Jesper Sahu]

Anumber of start-ups and small and medium-sized enterprises (SMEs) may have the right product, price, place, and promotions (the 4Ps of marketing), but they often struggle to get far, let alone attain market leadership. One important reason for this is their tendency to focus solely on their 4Ps and neglecting the crucial aspect of branding. Without a strong brand presence, a start-up or SME risks remaining stagnant in the market. Even when aspiring to build their brand, limited resources pose a challenge for most start-ups and SMEs. However, with the implementation of entrepreneurial branding strategies, these businesses can overcome obstacles and propel themselves towards growth and market leadership.

This course is designed for executives, managers, founders and owners of startups and SMEs, (from whichever industry and not just brand or marketing managers) who are keen to make use of entrepreneurial branding to turn their products/businesses into market-leading brands.

From 1 July 2019, NTU alumni may utilise their course credits of S$1,600.00 to co-pay up to 50% of the nett fee (exclusive of prevailing GST) payable for courses with starting date from 1 July 2019 onwards. There will be no administrative fee involved for the use of NTU Alumni Course Credits on courses with starting date from 1 July 2019 onwards. For more information, please visit here.

(1) On 2 July 1997 the Commission received notification pursuant to Article 4 of the Merger Regulation of a planned transaction by which Veba AG ('Veba`) was to acquire control of Degussa AG ('Degussa`). The notification failed to mention the fact that the Veba subsidiary Hls was doing business through a joint venture on one of the relevant markets, the market in fumed silica; and on 28 July 1997 the notification was declared incomplete. The notification was supplemented on 31 July 1997.

(4) Veba operates mainly in the following businesses: electricity, chemicals, oil, distribution, transport and services, and telecommunications. Its chemicals interests are handled by its subsidiary Hls and by Hls subsidiaries Rhm and Servo.

(9) A simple majority of the votes cast at the general meeting will enable Veba to appoint the shareholders' members of Degussa's supervisory board. The supervisory board can appoint or dismiss the members of the board of management by simple majority. This ensures that the holder of a simple majority at the general meeting can control the conduct of Degussa's business.

(10) As a result of the concentration, Veba will become by far the biggest shareholder in Degussa; the next-largest shareholder has a stake of only 6,8 %, and the other shares are widely dispersed. Veba will be the only large industrial shareholder with a knowledge of the markets and industries involved. The 6,8 % shareholder is an American family with no comparable market knowledge. The many other very small shareholders are in no position individually to exercise any decisive influence over the conduct of Degussa's business, and have not in the past made any effort to do so jointly.

(13) The business activities of Veba and Degussa overlap partially in the area of chemical products. A more detailed appraisal of the effects of the operation needs to be made in the area of methyl methacrylate, methacrylic acid, transparent plastics, acrylate-based PVC process additives, organosilanes, silicon tetrachloride, fumed silica, diamines/polyamines and reagents for the production of cationic starch. In all other areas and also in other business activities there is no overlap, so that in the absence of other indications the operation will not lead to the strengthening of the existing market positions.

(14) Methyl methacrylate (MMA) is a monomer which is the base for a major proportion of the other products of methacrylic chemistry. It is usually obtained by the ACH process from hydrocyanic acid, methanol and acetone. MMA is a liquid that has no direct use as an end product. As a rule it is processed further, being polymerised for example into polymethyl methacrylate (PMMA), a transparent plastic. According to information supplied by customers and producers, MMA cannot be replaced by other products. Accordingly, the Commission comes to the conclusion that MMA constitutes a separate product market.

(15) Methacrylic acid is likewise a basic monomer, and is closely related to MMA. It, too, is usually made by the ACH process, from the same raw materials but without the addition of methanol. Like MMA, methacrylic acid cannot be used as an end product, but is processed into other methacrylic products. One important use of methacrylic acid is in paint and varnish resins and dispersions, which in turn are processed into paints and different kinds of varnish. Methacrylic acid and MMA confer different properties on the products into which they are processed, and are not interchangeable from the user's point of view. This is confirmed by the parties and by competitors and customers. Accordingly, the Commission comes to the conclusion that methacrylic acid is a separate product market.

(16) Transparent plastics are mouldable transparent chemical products, which resemble glass in being transparent, but which are lighter, easier to work and as a rule less fragile than glass. Transparent plastics are used in a wide variety of applications, for example lamp coverings, motor industry subcontracting, advertising, motorway noise barriers, CD cases and other packaging.

(17) The main transparent plastics are polymethyl methacrylate or acrylic glass (PMMA), polycarbonate (PC), styrene-acrylonitrile copolymers (SANS), and polystyrene (PS). These plastics differ in properties and price. PMMA, for example, is especially weatherproof and highly transparent, while polycarbonate has high impact and heat resistance. Polystyrene is less transparent than PMMA and polycarbonate, but it is also cheaper. PMMA is produced by polymerisation from MMA. The other transparent plastics are also produced by polymerisation, but from other raw materials.

(18) The parties are of the opinion that all transparent plastics form one product market. They point out that extensive substitution is possible in many applications - either PMMA or polycarbonate can be used in lamps, for example. Any differences in properties can be reduced in the course of the production process or by the use of additives, and this can be offset in the price. In terms of durability, properties and price, they say, there are no essential differences between the various transparent plastics.

(19) The Commission's enquiries have shown that while substitution is possible in certain uses the extent of substitution varies greatly from one application to another (see the Commission Decision of 28 July 1992 in Case No IV/M.160 Elf Atochem/Rohm & Haas). Competitors and customers have confirmed that transparent plastics are not interchangeable in all applications. This is in particular the result of the different characteristics of different transparent plastics as described above, which make them specially apt for certain applications and inapt for other applications. But the question whether each transparent plastic constitutes a separate product market can be left open, because even on the assumption that the markets are separate no objections arise in competition law.

(20) On that assumption, only PMMA would be a relevant market. Veba/Hls and Degussa do both operate in the polycarbonate field, but their combined share of that market is no more than 15 %. Only Veba is involved in polystyrene, through Hls, which has a market share of less than 15 %, and neither of the parties is active in the SAN business.

(21) Transparent plastics are also sold onward, in the form of moulding powder or extruded or cast sheet. Moulding powder is a granulate which is processed and formed by heating and extrusion or by some other process. It is thus an intermediate product in the production of extruded sheet. Cast sheet, on the other hand, is cast direct at the polymerisation stage, without passing through the moulding powder stage.

(22) The parties are of the opinion that moulding powder and extruded or cast sheet constitute one market. They argue that extrusion or injection moulding do not involve any further substantial chemical change. Nor is there any difference in properties or price, for example, between extruded and cast sheet. They are fully interchangeable.

(23) According to the Commission's enquiries, sheet is considerably dearer than moulding powder, and the buying publics are different too. But the question whether there is one or several markets can be left open, as the conditions of competition are not fundamentally different for moulding powder and for sheet (see the Commission Decision of 28 July 1992 in Case No IV/M.160 Elf Atochem/Rohm & Haas).

(24) These are products which make the processing of PVC possible. They take the form of powders; when PVC is being formed they ensure that it passes the extruder feed screw without damage to the equipment, and improve the surface structure of the end product. They are used in the processing of both rigid and plasticised PVC, especially in the production of film, bottles and sections. The functions of acrylate-based PVC processing additives cannot be performed by other materials, and they constitute one product market.

(25) Organosilanes are essentially used as binders and cross-linking agents in a very wide variety of applications, such as glass cloths, adhesives and sealants, tyres, paints, varnishes and coatings for the preservation of structures. Three separate markets in organosilanes have to be distinguished.

(26) Organofunctional silanes are used as binders between inorganic materials such as glass, minerals and metals and organic polymers such as thermoplastics, as surfactants for inorganic and organic materials, and as cross-linking agents for polymers. Organofunctional silanes are divided into those for 'rubber` applications, such as tyre repairs, and those for 'non-rubber` applications. Silanes for 'rubber applications` and silanes for 'non-rubber applications` are produced in different installations and according to different procedures. The Commission's enquiries have confirmed that organofunctional silanes for rubber applications cannot be replaced by organofunctional silanes for non-rubber applications. These are therefore separate markets.

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