Crown Cork And Seal

Business Strategy transcend bobber and Seal Company, Inc. dull Burnet 6 Oct 2009 Business Strategy Matthew Burnet Page 1/4 assimilator # 306657 Business Strategy Case Study Crown Cork and Seal Company, Inc 1. In 1977 there were 100 firms run in the metal container industry, worth $7.1 billion, with the top four manufactures retentiveness 52% market share. Industry growing was relatively modest, managing exclusively 3.3% CAGR among 1967 and 1976. However, soft-drink and beer cans segment grew at a CAGR of 8.8% during this period, with ongoing high development expected. The industry is moderately capitally intensive - up-front investment of $10-$15 meg per line (two-piece cans), with instillations ranging from 1 to 5 lines. The products are undifferentiated, commodity items, where charge is set by the market. Manufacturers are price takers, and buyers have evidential might with limited switching costs between suppliers. ascrib toler able-bodied t o the high capital investments, manufacturers require high capacity do and large volumes in order to bring down their mean(a) costs, which they fulfill through volume discounts, further increasing the place of the purchasers. The suppliers were traditionally large US nerve companies and more belatedly aluminum suppliers.

Despite the fact that can companies were significant customers of steel products (fourth largest customers in aggregate) they did not have a strong talk ground position with their suppliers due to their limited individual share of gross sales amongst the few, large suppliers. The customers of the can companies were predominately majo! r food and beer companies (80% of sales). These buyers had considerable role over the can companies (ability to switch suppliers; threat of self manufacture) and were able to bid down prices and dictate terms (e.g. set table service levels). 2. There were four main trends that were evident since the early 1960s. These were: a) miscellanea magnitude self manufacture of large can customers in one case the...If you command to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay