Question

Marketing strategies are influenced by a number of external forces or “environments” i.e. global, technological, sociocultural, competitive, and economic. which of these environments has had the biggest impact on the cereal industry over the past 50 years? Why?

Answer 1

Cereal industry has biggest impact on it due to few external forces or environments.The factors or forces which has impact on cereal industry are global and competitive factors.Depending on market situation,these factors have both positive and negative impact on cereal industry.Global factor influences cereal market,as even local cereal companies expand their operations to foreign countries.This provides the consumers with various options of cereals and they tend to choose the desirable one.This might either increase or decrease the demand of cereal food in both domestic and foreign countries.If a company comes up with new idea of selling healthy cereal which has plenty of protiens and minerals might gain higher demand when compared to others.The demand for others cereals might decrease by causing loss.So,global factor has biggest impact on cereal industry which might either increase profits of cereal industries or it might even makedifficult for the industry to survive.It even influences cost pirce of cereals.Another factor which has impacts on cereal industry is competitive factor.It is the common factor which impacts every industry.Even cereal industry is impacted by competitive factor.Due to increase in globalisation,many companies came into existence with different cereal concepts and are using unique marketing strategies to attract consumers.This increased competition between both local and foreign cereal companies.There is a tough competition in cereal industry.The competition will lead to change in supply,demand,cost,etc.Hence,global and competitive factors has biggest impact on cereal industry.