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Oligopoly in the cereal Industry

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by

Valerie Vigliotti

on 14 November 2012

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Transcript of Oligopoly in the cereal Industry

it's a market form which a market or industry is dominated by a small amount of sellers. Also since is small the other sellers there are more aware of the action of the others. Oligopoly Breakfast Cereal Industry
By :Valerie Vigliotti What influence do firms have over price? Are all Firms selling identical or similar products? They have slight control , most are about competition with non price related areas.
with oligopoly it's more about competition with non price related areas using advertisement with related product.


How much competition exists between firms? It's similar and identical depending on the product like for example breakfast cereal is oligopoly because you can fine this product in the common food store and the store with have all kind of cereal / the same cereal which it both identical and similar. The breakfast cereal industry is oligopoly because it has about 3- 5 suppliers/ companies that control the market.

The four major suppliers are Kellogg, General Mills, post and Quaker How many suppliers are there? In the breakfast cereal industry competition is low to medium because these product are in grocery stores and similar to identical that how it's oligopoly. Is it Easy or difficult to enter the Market? In the Breakfast cereal industry for being oligopoly it's a very higher barriers to moderate to enter the market because you can kind these cereal products in any grocery store and drug store.
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