Crown Cork And Seal

Business Strategy opinion poll 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 operate in the metal container industry, worth $7.1 billion, with the top four manufactures belongings 52% market share. Industry growing was relatively modest, managing merely 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 developing expected. The industry is moderately capitally intensive - up-front investment of $10-$15 trillion per line (two-piece cans), with instillations ranging from 1 to 5 lines. The products are undifferentiated, commodity items, where damage is set by the market. Manufacturers are price takers, and buyers have evidentiary might with limited switching costs between suppliers. ascrib fair to middli ng to the high capital investments, manufacturers require high capacity traffic pattern and large volumes in order to bring down their mean(a) costs, which they come across through volume discounts, further increasing the place of the purchasers. The suppliers were traditionally large US nerve companies and more belatedly aluminium 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 scathe position with their suppliers due to their limited individual share of gross revenue amongst the few, large s uppliers. The customers of the can companies! were predominately major food and beer companies (80% of sales). These buyers had consider fit part 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 allot levels). 2. There were four main trends that were evident since the early 1960s. These were: a) sort 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

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