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Crown Cork Seal Case
complete 2 pages. Use bullet points make points lengthy prose. Crown Cork & Seal Case Questions 1. You asked Avery analyze industry Crown Cork Seal competes. What industries analysis -- list . 2.
You have been asked by Avery to analyze the industry that Crown Cork Seal competes in. What are the possible industries that you could consider for analysis -- please list them.
The metal container industry as a whole
Beverage cans
Aerosol cans
Now apply the Five Forces model (please refer to pages 69-77 in Grant textbook for Five Forces model and the Porter article) to analyze the metal container industry. Summarize your analysis with the Five Forces model.
Threat of new entrants: The threat of new entrants is fairly low, given the high costs associated with starting an efficient manufacturing firm producing metal cans. (Weak)
Threat of substitutes: In specific market sectors, such as the beverage industry, threat of substitutes is extremely high. Glass and plastic are possible alternative...
(Strong)
Rivalry between firms: Five firms dominate the industry, holding a 61% market share and rivalry is intense between these entities. (Strong)
Buying power of buyers: Buying power of suppliers is high, given that only a few major companies control the market within specific sectors. Coca-Cola, the most popular soft drink in the world, dominates a large segment of the canned beverage market. Because the costs of bottling are so high -- up to 45% of total input costs -- companies seeking bottles are willing to 'shop around' for the best prices and will quickly pull their business from a manufacturing company if it prices itself too high. (Moderate).
Buying power of suppliers: Suppliers have little flexibility and control over costs, given the importance of input costs, transportation costs, and even the bulky nature of transporting the cans, which limits their choice of shipping vehicle. Buyers are capable of easily shifting their business to other manufacturers that offer discounts. Suppliers must offer discounts to buyers to encourage…
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