Crown Cork And Seal

Business Strategy upper side bobber and Seal Company, Inc. flat 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 in operation(p) in the metal container industry, worth $7.1 billion, with the top four manufactures retentivity 52% market share. Industry growing was relatively modest, managing only 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 addition 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 impairment is set by the market. Manufacturers are price takers, and buyers have evidentiary might with limited switching costs between suppliers. ascrib comely to t he high capital investments, manufacturers require high capacity trust and large volumes in order to bring down their mean(a) costs, which they strive 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 damage position with their suppliers due to their limited individual share of gross revenue amongst the few, large suppliers. The customers of the can companies were predominately major food and beer companies! (80% of sales). These buyers had consider adapted power 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 look levels). 2. There were four main trends that were evident since the early 1960s. These were: a) commute magnitude self manufacture of large can customers at once the...If you command to get a full essay, order it on our website: BestEssayCheap.com

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