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.Combined,these four firms have

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These firms have a sustainable competitive advantage due to their large volume production, heavy promotion, and control over supermarket shelf space through slotting allowances. This combination of strategies makes it difficult for new competitors to enter the market.

Four Companies Dominate the Cereal Industry