Kellogg has much stronger competition in the field of production and marketing of ready-to-eat cereals. The major rival is the top lead of the cereal manufacturing company General Mills. The top most products in the global market of ready-to-eat cereals are General Mills’ Cheerios. The other leading rivals are Post unit of Kraft Foods and Quaker Oats unit of PepsiCo.
If Kellogg attempts to acquire Quaker Oats from PepsiCo, the result would be better than before. The acquiring can bring about many advantages to Kellogg. One of the rivals in the field of competition in the market gets out of the scene of competition. The focus can then be concentrated on the remaining competitors. Quaker Oats will definitely be a good strategic fit for Kellogg.
This would enhance the ready-to-use cereal marketing of Kellogg. The aim of Kellogg to achieve the top most position in the cereal market, replacing General Mills would be now closer enough to capture. The bargaining power of suppliers and buyers can be reduced to a good extent and the rivalry among competitors can also be reduced.