he Breakfast Cereal industry is characterized by the presence of high brand loyalty, high scale economies, and proprietary technology owned by the current incumbent firms. Because cereal boxes are bulky, finding shelf space in retail stores is difficult and costly, especially for new brands that don't already have a lot of customer demand. Moreover, suppliers to the industry provide undifferentiated commodity-like products (such as grain) and consist of many small firms. The information in this scenario indicates that for the Breakfast Cereal Production industry