Crown,_Cork_&_Seal

Crown, Cork & Seal Introduction: In the face of a changing business landscape in the metal can industry, William J. Avery, Crown’s new CEO, had planned on revising his predecessor, John Connelly’s business strategy. Suppliers and customers of can makers were beginning to integrate into can makers themselves, which was redefining the metal industry. Under Connelly, Crown attained sustained success over three decades due to Connelly’s strict strategies, which emphasized cost efficiency, quality and customer service. Avery was trying to determine whether or not to break with tradition or expand Crown’s product line due to the changing nature of the metal can industry landscape and/or participate in the supplier and customer consolidation that had become traditional in the metal can business. Analysis: In order to understand how the industry is changing, we must first look at the forces involved and trends that are emerging. One fact in particular that immediately stands out is that industry operating margins began to fall in spite of persistent demand for metal cans. This can be attributed to several factors. First, Five large firms dominated the industry with close to 100 lesser firms. The distribution of market share closely represents an oligopoly, which would suggest industry, customer, connelly, sales, metal, market, aluminum, crown’s, crown, soft, costs, company, business, quality, drink, connelly’s, cans, because, due, avery, through, strategy, increased, service, products, plastics, plastic, largest, customers, continental, 1989, 1988, strategies, profit, production