US ready-to-eat breakfast cereals entered the Chinese market in the mid-1990s. In the past years, this all-American food has been generating business losses. Such underperformance calls for prompt strategic modification by the cereal investors. This study focuses on foreign entry strategy and product strategy, and characterizes a combination of literature review and case study. Literature review seeks appropriate theories and frameworks, and therefore renders a sound conceptual foundation for the later analysis. Case study proposes a generic entry/product strategy, critiques current company-specific strategies, an d provides recommendations for future improvement. Selected in the case study are three brand-name cereal manufacturers, including Kellogg, Quaker Oats, and General Mills, with Kellogg being the focus and the others serving as a comparison.