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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1) Substitutability by buyers and suppliers defines the boundaries 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
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Reason for the high-profitability of the RTE cereal business: The "Big Three" cereal manufacturers have jointly monopolized the market and have reaped high profits from their monopoly pricing combined with the tacit co-ordination they share regarding price hikes. The "Big Three" have backed up their monopoly strategy with their strong relationships with each other and with regional and national grocers. This relationship allowed them to control or buy shelf space and ideal positioning of their product
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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 Aluminum Industry in 19941 and Aluminum Smelting in South Africa: Alusaf’s Hillside Project2 1) Is primary aluminum production an attractive industry? Why or why not? Within the framework of the Structure-Conduct-Performance (SCP) model3‚ the primary aluminum production industry (“the industry”) in 1994 can be described as perfectly competitive. The industry is characterized by a large number of competing firms – the largest of which has only 4.1% of total industry capacity; homogeneous
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done a project on CONSUMER’S ATTITUDE TOWARDS READY TO EAT FOOD INDUSTRY (RTE) as a part of marketing research information system course. The current situation is made known to the students when they undertake the project. The project gives better insides into the application part of the theory. The companies in an industry and their operations can be better known by the students when they analyze the data and prepare the project. This project is on the study of CONSUMER’S ATTITUDE TOWARDS READY
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Steel Industry. Submitted by:- Himanshu Singh‚ G12024 Paul Jacob‚ G12034 Aninda Goswamy‚ G12008 Objective: This study has multiple goals:- 1. To find out if Tata Steel does enjoy a competitive advantage vis-à-vis other players in the Steel industry in India. 2. To ascertain the source of this competitive advantage. 3. Find out if this competitive advantage is sustainable. Industry Overview India today is one of the topmost producers of steel in the world. With the industry attributes
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This is the Pre-Published Version The Impact of Employee Satisfaction on Quality and Profitability in High-contact Service Industries Rachel W. Y. Yee Department of Logistics‚ The Hong Kong Polytechnic University‚ Hung Hom‚ Kowloon‚ Hong Kong E-mail: Rachel.wyyee@polyu.edu.hk Andy C. L. Yeung* Department of Logistics‚ The Hong Kong Polytechnic University‚ Hung Hom‚ Kowloon‚ Hong Kong E-mail: lgtandyy@inet.polyu.edu.hk Tel.: (852) 2766 4063 Fax: (852) 2330 2704 *Corresponding Author T
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ready-to-eat Breakfast Cereal Industry in 1994 Why RTE cereal has been such a profitable business up to the 1990s? Rivalry among existing competitors: Low. Restrained competition through effective unwritten agreements for the big three to work together on restricting – trade dealing‚ in-pack premiums‚ and vitamin fortification‚ these were viewed as powerful tools for increasing a firms market share. Bargaining power of suppliers: Low. The big three were leading the suppliers. Bargaining
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Ready to Eat (RTE) food segment has emerged as one of the fastest growing sectors in the Indian economy. Due to the large consumer base‚ the market for this sector was worth about Rs 800 Million in 2010 and has an enormous potential for growth. The total size of the processed foods market is Rs1500 crore‚ of which the Ready to Cook and Ready to Eat markets are Rs 1275 crore and Rs.225 crore respectively this year with an expected growth rate of 25 – 30% over the next 5 years. This shows the enormous
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