Reference: Corts, K.S. 1997. The ready-to-eat breakfast cereal industry in 1994 (A).Harvard Business School. Case Study9-795-191.

Evaluate the sources of value creation and value capture in the breakfast cereal industry. In your answer, aim to address the following questions:

a) How did the Big Three work together to capture value in the industry, and what were the enabling factors that allowed them to?

b) How much value did the Big Three capture compared to the food stores that bought from them?

Question 2a)

Describe two changes in the early 1990s that made it easier for private labels toenter the market and capture value that was previously held by the Big Three.

How do you think the big three firms could have reacted to these threats? Provide at least two relevant suggestions