Cereal:The Manufacturing Industry :: essays research papers fc

caryopsis The Manufacturing IndustryEveryday, more than eighty million Americans have just about showcase of caryopsis for breakfast. Cereal is one of the most popular breakfast foods and some reproach is found in almost every home in America (Topher). This vast pains 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 track the grocery store shelves. However, only a few select companies tell on every one of those antithetical kinds of cereal.There are four different categories into which economists classify industries. These categories are perfect challenger, monopolistic competition, oligopoly, and monopoly. Each of these four categories has its testify unique characteristics. Perfect competition has an unlimited number of firms, while a monopoly has one single firm, and an oligopoly consists of a small number of interdependent firms. The get hold of curve of an oligopoly depends on how firms choose to deal with their interdependence with the early(a) firms in the industry. A firm within an oligopoly market can choose to work with other firms in the industry, which is illegal, or the firm can choose to get by against the other firms. An oligopoly produces either differentiated products or same products. In an oligopolistic market, access barriers, which prohibit new firms from entering the industry, are present. Examples of entry barriers include patents, brand loyalty and trademarks. Long-run economic profits are possible for an oligopoly, and non-price competition is a significant way to compete with other firms in the uniform market. Most of the non-price competition in an oligopoly comes from product differentiation. The cereal manufacturing industry is an oligopolistic market because it exhibits many of these traits.An oligopoly consists of a small number of interdependent firms. The cereal manufacturing industry con sists of four different firms that control almost all of the market. These companies are trembler Oats, Kellogg, Kraft Foods, and General Mills (Lazich 68). In 2001, General Mills and Kellogg lead the industry with a market contribution of 32.2 and 30.7 percent, respectively (68). Kraft Foods had a market share of 16.3 percent and Quaker Oats had a market share of 19.0 percent (68). The remaining 11.8 percent of the market share was held by other firms (68). In 2002, Kellogg took the lead with 32.7 percent followed by General Mills with a 31.8 percent market share (Reyes).An oligopoly consists of either differentiated or homogenous products.