Crown Cork & Seal in 1989Group-4

What are the key strategic issues that Avery needs to consider? What strategic option are open for him?•Growing opportunities in plastic containers and glass containers, since slow growth in metal containers.?•Whether or not to get in the bidding for continental Can?

Options in front of him:• Diversify beyond manufacturer of container since Crown’s

competitors had expanded in variety of directions.?• Acquisition of Continental Can

1. Largest single presence outside US2. CCC would double size of domestic operation

In order to analyze the industry that crown competes in, we draw our attention to metal, plastics, and glass container industry.

Crown cork was revived under john Connelly as he stepped up as the president of crown cork, when the company was on the verge of bankruptcy .The company’s vision changed to emphasize on cost efficiency, quality and customer services.

This was done by recognizing crown’s position as a small producer and developed a product line built around the company’s traditional strength in metal forming and fabrication.

Industries Attractiveness

Declining profit margin

Standardized Items

High requirement of capital to enter the market.

Highly Competitive with a small number of large Competitions

Crown Cork was doing great under John Connelly.

Their keys to their success was the change in the following functional company policies –• Product Line • Marketing • Manufacturing• Research & Development • Organization• International Market Strategy• Financial strategy

In light of changes happening in the industry how shall Avery responds? Is it the time to change the Crown strategy?

• Buy all or part of Continental Can can help Crown Cork as..• They would be co-equal leader in the world with Pechiney’s American National• Acquiring Continental Canada would make Crown the leading supplier of all types

of cans in Canada• This can help Crown cork to diversify their business segments & would be a

departure from Crown’s traditional strategy but it could be justified as similar to its country-based strategies in the rest of the world.• Due to this acquisition, Crown cork can become second largest manufacturers of

Can in US with market share of nearly 32%• They can get opportunity to enter in to upcoming Plastic Can Manufacturing

segment which is having potential to become future of packaging industry.