Four companies dominate the cereal industry. These firms produce in large volumes, promote heavily, and control access to the supermarket shelves through "slotting allowances," which are payments to retailers in return for shelf space. These combined factors have allowed these four firms to create ________ over the competition.

Question

Quizplus · Accepted Answer

The description provided suggests that the four dominant cereal companies have created a sustainable competitive advantage through their large volumes, heavy promotion, and control of shelf space through slotting allowances. This has allowed them to outcompete smaller cereal companies and maintain their position in the market. Therefore, answer choice C (a sustainable competitive advantage) best fits the description.

Four Companies Dominate the Cereal Industry