crown cork & seal in 1989
DESCRIPTION
Crown Cork & Seal in 1989TRANSCRIPT
Crown Cork & Seal in 1989 Industry analysis
PRESENTED BY:
SHYAMANTA BORAH (05)MANISH PATHAK (45)SAMARTH SHARMA (53)SHASHANKA SHEKHAR (54)
Introduction
• Established in 1891• Financial problems in 1956 leading to virtual bankruptcy in
1957• John Conolly arrived in 1957 and turned the company
around through modernisation; asset disposal• Started overseas investment• Restructuring• Increased Performance
American Na-
tional
44%
Other28%
Cen-tinen
tal Can13%
Renolds Metals
5%Crown Cork
& Seal5% Ball Cor-
poration5%
market share
Top U.S. Users of Containers & Suppliers, 1989Coca-Cola Company Suppliers:
Anheuser-Busch Companies Inc.
PepsiCo Inc.
The Seagram Company, Ltd.
Threat of Substitution
Suppliers• Can producing companies were
fourth largest steel consumers• During 60-70s traditional tin plated
can industry was invaded by aluminium cans and also fiber-foils and plastic suppliers
Customers• 80% of metal cans were purchased
by major food and beverage companies
• Can constituted 45% of the cost of the final product
• Hence most had at least two suppliers
• Poor services and uncompetitive prices could be punished – Therefore high propensity to substitute
• Can plants set up to certain customer format, therefore high bargaining power of customers
Title and Content Layout with SmartArt• Substitutes• Aluminium cans, plastic, paper, glass containers• Aluminium/Steel Price/Preformance glass
• Marketing potential of aluminium/glass (lithography)• "a bottle which a person could recognize even if they
felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was" – Coca-cola
• Steel alters taste vs aluminium and glass do not• Steel $17.13 vs $20.81 – Steel vs Aluminium
• Substitutes pushed by legislation – recycling & CFC – aerosols