Kellogg's Indian Experience Details Source: http://www.icmrindia.org/free%20resources/casestudies/Marketing%20freecasestudyp1.htm Themes: MNCs in India Period : 1995-2001 Organization : Kellogg India Ltd Pub Date : 2001 Countries : India Industry : Cereals and Convenience foods Kellogg's Indian Experience: A Failed Launch In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There was a 25% decline in countrywide
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CASE QUESTIONS C.P.: The ready-to-eat breakfast cereal industry in 1994 (A) (HBS 9-795-191) ▪ What are the barriers to entry in the RTE cereal industry? ▪ Is the recent decrease in profitability a temporary phenomenon or a permanent change in industry profitability? ▪ Is the recent decrease in profitability a temporary phenomenon or a permanent change in industry profitability? ▪ What should of the large three competitors do? ▪ How should Kellogg compete with the white-label firms? C.P.:
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This essay will define two major contrasting models that organizations can use in pursuit of competitive advantage, the industry organization model and the Resource Based model. These models will be applied to Hubbard’s Foods, a small family owned New Zealand breakfast cereal manufacturer, who against the odds can hold their own alongside the big names of the cereal industry. All the while operating in an environmentally friendly manner with a far greater corporate social responsibility than
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Microeconomics Historically, the breakfast cereals industry had become prominent and successful due to its Oligopoly structure of market where there was small number of large players in the industry. Under Oligopoly, there was difficulty for the small players to penetrate the market. This was in fact evidenced by the “antitrust” complaint filed by the FTC which argued that the incumbent firms (the Big Three) had effectively discouraged small firms to enter the industry. How was it done? It was observed that
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Rte Cereal Industry The Ready-to-Eat (RTE) Breakfast Cereal Industry in 1994 The Big Three (Kellogg, General Mills, and Phillip Morris) had been enjoying the stable Ready-to-Eat breakfast cereal industry with above average profitability since its start in 1894 until the recent surge of the private label sales and slowing demand. The Big Three had been extremely profitable because they were able to maintain high prices by restraining from direct price competition among themselves, which would
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1. Why has cereal breakfast been such a profitable business? Cereal breakfast industry has been highly concentrated industry with top four firms accounting for 80% of market share in 1993. Return-On-Sales in this industry (18%) is also significantly higher than compared to those in general food industry (5%). Primary reason for high profitability is * Barrier to entry: Cereals breakfast industry although had no explicit regulatory barriers to entry, still the list mentioned below were acted as
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THE BATTLE FOR THE BREAKFAST CEREAL MARKET, by Richard Lynch 1. INTRODUCTION Corporate strategy is certainly a topic that is exciting and challenging. It makes fundamental decisions about the future directions of organisations. And it has the potential to have a real impact on people's lives. But it isn't the easiest subject to study. There are several reasons for this: *It's a young academic subject when compared to more traditional topics like economics and organisational behaviour. This means
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Ievgeniia Sapa_BU_598 Cases summaries The case” Nissan Motor Co., Ltd., 2002” It begins with the praise of Carlos Ghosn, president and CEO of Japanese auto manufacturer Nissan Motor Co., Ltd., his successful work and prosperous contribution to company that had reached amazing results in 2002 comparing with the last three years of almost bankruptcy. Its operating profits and net profit raised 68% and 12,4% and operating margin raised from 4.75% to 7.9% from the previous year. From the case we
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be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of competitive advantage and disadvantage. 2. Develop business level strategies by defining the type of advantage sought, scope of operations and activities required to deliver the chosen strategy. Assess the likely
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Assignment One: Cereal Aisle Analysis I work Mondays through Fridays and I do my grocery shopping every Saturdays even though I know it’s might be extremely busy and crowed, but this time it worked to my advantage because I was able to conduct the observations required for this assignment. I went to my local giant store here in Horsham, PA around 10am and I went directly to the cereal aisle for 30mn to have enough information from various people groups. The first group was the families’ mom, dad
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