Kelloggs Case Study Help

The competitive environment of Kelloggs would be studied by means of Porter's five forces analysis which would highlight the degree of competition in the market.
Kelloggs Case Study Solution

Degree of Rivalry:

Currently we can see that the adhesive market has a high development potential due to the existence of fragmented sections with Kelloggs enjoying leadership and a combined market share of 75% with 2 other industry players, Eastman and Permabond. While market competition between these players could be called 'intense' as the customer is not brand mindful and each of these players has prominence in regards to market share, the fact still stays that the market is not saturated and still has several market sectors which can be targeted as prospective niche markets even when introducing an adhesive. However, we can even mention the reality that sales cannibalization might be causing industry competition in the adhesive dispenser market while the market for instantaneous adhesives uses development potential.

Bargaining Power of Buyer: The Bargaining power of the purchaser in this industry is low specifically as the buyer has low knowledge about the item. While business like Kelloggs have managed to train suppliers regarding adhesives, the final customer depends on distributors. Around 72% of sales are made directly by manufacturers and distributors for immediate adhesives so the buyer has a low bargaining power.

Bargaining Power of Supplier: Provided the reality that the adhesive market is controlled by three gamers, it could be said that the supplier takes pleasure in a greater bargaining power compared to the purchaser. The reality remains that the provider does not have much influence over the purchaser at this point especially as the buyer does not show brand recognition or cost sensitivity. When it comes to the adhesive market while the purchaser and the producer do not have a major control over the real sales, this shows that the supplier has the higher power.

Threat of new entrants: The competitive environment with its low brand name loyalty and the ease of entry shown by foreign Japanese competitors in the immediate adhesive market shows that the marketplace permits ease of entry. Nevertheless, if we look at Kelloggs in particular, the business has double capabilities in terms of being a producer of adhesive dispensers and instantaneous adhesives. Possible dangers in devices giving industry are low which reveals the possibility of creating brand awareness in not only immediate adhesives but likewise in dispensing adhesives as none of the industry gamers has actually managed to place itself in dual capabilities.

Danger of Substitutes: The risk of replacements in the instantaneous adhesive industry is low while the dispenser market in particular has alternatives like Glumetic idea applicators, built-in applicators, pencil applicators and advanced consoles. The fact stays that if Kelloggs presented Bond-A-Matic, it would be delighting in sales cannibalization for its own items. (see appendix 1 for structure).

Laura Ashley B Defining A Strategy Kathy Giusti And The Multiple Myeloma Research Foundation Cisco Systems Building Leading Internet Capabilities Chaircraft Corp 1988
Tiburon Optimark Launching A Virtual Securities Market Interview With Bill Hambrecht Disruptive Ipos Wr Hambrecht And Co
Hotbank Softbanks New Business Model For Early Stage Venture Incubation Goldman Sachs Ipo A Professional Services Module Five Serving Clients Effectively Driving Innovation At Par Springer Miller B
Professional Services Module Two External Strategy For Sustained Competitive Advantage Professional Services Module One Introduction To The Challenges Facing Psfs Whats The Big Idea A Spanish Version The Real Green It Machine
Breaking Down The Wall Of Codes Evaluating Non Financial Performance Measurement Union Carbide Deal Abridged J Trading Full Circle Outsourcing Barings Collapse B Failures In Control And Information Use
David Berman Precision Steel Fabrication An Equipment Purchase Decision Pricewaterhousecoopers Building A Global Network Business Networks
Chaircraft Corp B Goodbelly Using Statistics To Justify The Marketing Expense E Procurement At Cathay Pacific Airways E Business Valuation Manville Corp Fiber Glass Group C
Achieving Excellence In Global Sourcing Electronic Commerce At Air Products Longxi Machinery Works Quality Improvement C Li And Fung Trading Ltd
Note On Quality Function Deployment Lianhua Supermarket Success Through It Application Apparel Exports And The Indian Economy Cmm Versus Agile Methodology Wars In Software Development
An Erp Story Epilogue D The Recs Project A The Cim Project Hdfc Bank Securing Online Banking
An Erp Story Troubles Ahead C The Recs Project B An Erp Story Background A Information At The World Bank In Search Of A Technology Solution A
The Recs Project C Bank Of Ireland Boi Internet Strategy Dairy Farm Group Electronic Commerce Advantage Constructing An E Supply Chain At Eastman Chemical Company
Air Products And Chemicals Inc Mis Reorganization A Baker Precision Instruments Inc Silicon Graphics Inc B Pilkington Float Glass 1955
Lucent Technologies Optical Networking Group Hill And Knowlton Knowledge Management First Virtual Holdings Inc A Knowledge Management At Accenture
Government E Procurement Electronic Tendering System In The Hong Kong Sar He Butt Grocery Co The New Digital Strategy A General Motors Building A Digital Loyalty Network Through Demand And Supply Chain Integration Jardines Tapping The Asian E Commerce Market
E Commerce At Williams Sonoma Ford Motor Co Supply Chain Strategy Portuguese Version Ipremier Co C Denial Of Service Attack Ebay B Combating Fraud
New E Commerce Intermediaries Ebags Managing Growth Ebay C Paypal Merger Selecting A Hosting Provider