United Cereal Case Study
Part 2: The European Market
(d) Do an analysis of UC´s environment in Europe by following the information given in the case! Use Porter´s 5 Forces as well as a SWOT analysis!
The multinational breakfast foods company United Cereal entered European markets in 1952. By the year 2010 Europe´s breakfast cereal market has grown to a $7 billion business which has proven to be a profitable market segment and therefore attracted various competitors. Only four actors account for 70% of market share in the European markets. Among them are Kellogg which is regarded as UC´s strongest competitor, ranked first with a 26% share, Cereal Partners, a joint venture between General Mills and Nestlé, with a 17%, and Weetabix with a 7% share in the market. United Cereal itself holds a market share of 20% and is therefore the second largest breakfast foods company. The remaining 30% are divided between various smaller companies.
For creating a successful strategy, a keen understanding of a company´s resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being is essential. Therefore the following SWOT analysis draws a conclusion about the company´s current overall situation and performance taking into account United Cereal´s strategy as well as external market opportunities and threats .
Figure 1: SWOT analysis of UC´s environment in Europe (own representation)
Beginning with United Cereal´s strengths, its shared corporate values known as “The UC way” represent the company´s foundation and all other characteristics UC stands for. Focusing on customers and implementing innovative marketing and product development strategies are just two characteristics that represents the commitment to the company´s origins. As one of the widely recognized market leaders that represents itself through strong corporate values, UC keeps a clear position in the market. Additionally, making use of existing know-how by acquiring established companies
(d) Do an analysis of UC´s environment in Europe by following the information given in the case! Use Porter´s 5 Forces as well as a SWOT analysis!
The multinational breakfast foods company United Cereal entered European markets in 1952. By the year 2010 Europe´s breakfast cereal market has grown to a $7 billion business which has proven to be a profitable market segment and therefore attracted various competitors. Only four actors account for 70% of market share in the European markets. Among them are Kellogg which is regarded as UC´s strongest competitor, ranked first with a 26% share, Cereal Partners, a joint venture between General Mills and Nestlé, with a 17%, and Weetabix with a 7% share in the market. United Cereal itself holds a market share of 20% and is therefore the second largest breakfast foods company. The remaining 30% are divided between various smaller companies.
For creating a successful strategy, a keen understanding of a company´s resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being is essential. Therefore the following SWOT analysis draws a conclusion about the company´s current overall situation and performance taking into account United Cereal´s strategy as well as external market opportunities and threats .
Figure 1: SWOT analysis of UC´s environment in Europe (own representation)
Beginning with United Cereal´s strengths, its shared corporate values known as “The UC way” represent the company´s foundation and all other characteristics UC stands for. Focusing on customers and implementing innovative marketing and product development strategies are just two characteristics that represents the commitment to the company´s origins. As one of the widely recognized market leaders that represents itself through strong corporate values, UC keeps a clear position in the market. Additionally, making use of existing know-how by acquiring established companies