[SOLVED] I. Synopsis Although Kellogg commands the market

I. Synopsis
Although Kellogg commands the market leader position globally in breakfast cereals, it faces a new and more formidable international competitor starting 1989. General Mills and the Swiss food titan Nestlé, South Africa, established a joint venture called Cereal Partners Worldwide (CPW), which essentially combined General Mills’ cereal brands and cereal-making equipment with Nestlé’s name recognition and branding in numerous markets and its vast experience with retailers there. By 1994, CPW was already beginning to eat into Kellogg’s market share in various countries.
All CPW’s breakfast cereals are marketed under the Nestlé brand name. They include Shredded Wheat, Shreddies, Cheerios, Golden Grahams, Clusters, Sporties, Golden Nuggets and Nesquik. CPW is headquartered in Lausanne, Switzerland.
In fiscal year 2014, the company generated revenues of approximately USD 3 billion.
II. Situational analysis (SWOT analysis)
Strengths:
- The combination of competences (General Mills and Nestlé) along the total value chain.
- CPW offers its products under a large portfolio of well recognized Nestle brands.
Weaknesses:
- Hard to communicate CPW’s competences towards the customers who may be confused that CPW is the real seller, but the cereal packaging indicates that Nestlé is the seller.
Opportunities:
Over the past few years, there has been a newfound emphasis on healthier eating. With a change in lifestyle, people are becoming more aware of the negative effects of unhealthy eating habits. Consumers are showing increased preference for fat-free and healthy food products. Food items containing trans-fat are losing market share as they are linked to cardiovascular diseases. Threats:
- CPW faces intense competition in both domestic and international markets. Principal factors of competition include new product introductions, product quality, taste, nutritional value, price and promotion. The company’s products compete with branded products and private label products, which are typically distributed at lower prices. - The US breakfast cereals market has been shrinking in terms of both value and volume.
III. Proposed answers to questions Carol has heard that you are the new global marketing specialist so you are called in as a last-minute consultant before the presentation to the board of directors. You are confronted with the following questions, which you are supposed to answer as best you can.
1. How can General Mills and Nestlé create international competitiveness by joining forces in CPW?
2. Evaluate the international competitiveness of CPW compared to the Kellogg Company.
3. Suggest how CPW can create a blue ocean strategy.
4. Where and how can CPW create further international sales growth?

Question: I. Synopsis Although Kellogg commands the market