Executive Summary: The cereal market is a booming industry. It has been around for over one hundred years and continues to attract millions of customers’ everyday. The market structure of the cereal industry is an Oligopoly. This is because there are four large firms‚ Kellogg‚ General Mills‚ Post‚ and Quaker Oats‚ which dominate the industry. There are also a few small firms who are involved in the cereal industry as well. The cereal industry targets all different age groups from young kids to
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of RTE cereal industry from a demand-side perspective and a supply-side perspective respectively. The boundaries from a demand-side perspective in this case are the fact that buyers have low switching costs. The cereal industry has a diversified range of products so consumers can easily substitute one type of cereal for another or one brand for another. From the supply-side perspective‚ boundaries are technological in nature such that larger firms can produce many different types of cereals in large
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Cereal: The Manufacturing Industry Everyday‚ more than eighty million Americans have some type of cereal for breakfast. Cereal is one of the most popular breakfast foods and some brand is found in almost every home in America (Topher). This vast industry stems from the late 1800s when John Harvey Kellogg and C. W. Post began cereal production in Battle Creek‚ Michigan (Topher). Today‚ numerous types and varieties of cereal line the grocery store shelves. However‚ only a few select companies
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Ready To Eat Breakfast Cereal Industry Monday‚ September 09‚ 2013 3:09 PM The Big 3 and the industry before the 1990’s 1972 Federal trade Commission file a major antitrust suit against the big 3 (Kellogg‚ General Mills‚ and General Foods) Argued: Monopolized cereal market and had taken specific steps to deter entry by new firms How? Restrained competition amongst themselves through "unwritten agreements" to limit the in-pack premiums (free toys‚ gifts‚ e tc) -Refrain from trade
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The RTE Cereal Industry in 1994 Case Analysis Competitive Strategy Presented by: Raghav Keshav Why has RTE cereal been such a profitable business? The RTE cereal market is a classic oligopoly with the four dominant players controlling 85% of the market. The return on sales earned by the incumbents in this market (18%) is significantly higher compared to rest of the food industry (5%). Efficient markets typically entice new entrants when the returns are attractive. These returns are gradually
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SCP MODEL MARKET DEFINITION  Product Level The industry for these products is the Ready-to-Eat Breakfast Cereal‚ but recently some companies attend to extend the reach of its products into snack food.  Geographic Level The geographic level for the analysis of this industry is national. All the companies were focus on obtain market share from the whole industry in the United State. BASIC CONDITION Demand 1. Price Elasticity It is an elastic demand because it is influenced for
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READY-TO-EAT BREAKFAST CEREAL INDUSTRY- GROUP B-5 RTE INDUSTRY BOUNDARIES When looking at supply side of RTE cereal industry major costs to producers constitute of initial investment in production plant. Flexible manufacturing plants resulted in a rather high supply-side substitutability between different cereals. This implies that RTE cereal producers operate in a broader cereal industry as opposed to one for only a specific type‚ such as puffed or shredded wheat cereals. However‚ differences
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ysisChildren’s breakfast cereal has become a part of Australian life . The convenience and nutritional value has seen generations of children start their day with one of the many choices on offer. Australia and New Zealand have one of the highest consumptions of ready-to-eat cereals per capita in the world. Only the Republic of Ireland and the UK have higher consumption levels and children are the highest consumers of sweetened breakfast cereals‚ those containing over 25% sugar. (Kellogg Sales
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Description One of my favorite things to eat is breakfast cereal. I have been a cereal eater since I was a kid and have chosen to do my paper on the breakfast cereal industry. The NAICS code is 311320. The SIC code is 2043 Cereal Breakfast Foods. The SIC gives a description of establishments as primarily engaged in manufacturing cereal breakfast foods and related preparations‚ except breakfast bars. Cereal breakfast foods include: coffee substitutes made grain‚ hulled corn‚ farina‚ granola (except
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Consume Breakfast and Ready-to-Eat Cereals 研究生：徐慧中撰 指導教授：周泰華 中華民國 九十六年 六月 Acknowledgements I wish to thank the many people who have made significant contributions to this research. I wish to acknowledge the excellence help and advice provided by Lin Lin Ku‚ the Senior Product Manager of Kellogg Asia Marketing Incorporation‚ Taiwan Branch. It was my honor to be able to interview Lin Lin Ku‚ and to obtain a clear picture of Taiwanese breakfast cereal industry. Besides‚ she also arranged for
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