Kegg's Cereals Inc. is a major supplier to almost all grocery store chains. It has most of the valuable shelf space in the cereal aisle. Which of the following is true based on this information?

Question

Quizplus · Accepted Answer

Kegg's Cereals Inc. has most of the valuable shelf space in the cereal aisle, which suggests that it has strong relationships with the grocery store chains and high brand recognition among customers. This makes it difficult for new entrants to compete with Kegg's, indicating that the threat of new entrants is low.