Crown cork 2013
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Transcript of Crown cork 2013
![Page 1: Crown cork 2013](https://reader033.fdocuments.in/reader033/viewer/2022061201/547a6c35b4af9fd3158b4ad3/html5/thumbnails/1.jpg)
CROWN CORK AND SEAL IN 1989
GROUP 2:Suman Paul
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METAL CONTAINER INDUSTRY
61% OF PACKAGED PRODUCTS
3 PIECE CAN TO 2 PIECE CAN
STEEL BODY TO ALUMINIUM
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INDUSTRY STRUCTURE
PRICING
CUSTOMERS
DISTRIBUTION
MANUFACTURING
SUPPLIERS
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INDUSTRY TRENDS
IN HOUSE MANUFACTURING
PLASTICS
GLASS
SOFT AND ALUMINIUM CANS
DIVERSIFICATION AND CONSOLIDATION
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CONNELLY’S STARTEGYPRODUCTS AND MARKETS
MANUFACTURING
RECYCLING
R&D
MARKETING AND CUSTOMER SERVICE
FINANCING
INTERNATIONAL
PERFORMANCE
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Final Strategy adopted by Crown cork are:
1990 Consolidation :
Continental Europe Unit purchased to increase market share in Europe.(In Metal Can)
1992-Getting into Plastics :
It acquires CONSTAR International, a world leader in PET plastic containers for the beverage, food and household markets.
1996-Creating a World Packaging Leader:
Crown Cork & Seal acquires CarnaudMetalbox, Europe's leading manufacturer of metal and plastic packagingBecomes the world's packaging leader.
2000 : Innovation in Sealing systemCrown introduces the first major breakthrough in beverage end technology in nearly 20 years: the revolutionary Super End® beverage ends. This development reflects Crown's dedication to innovate within the metal packaging industry
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2005
Crown sells its Global Plastic Closures business.
2008-Environmental friendly product:
EarthSafe™ Dispensing SystemReplaces hydrocarbons with compressed air as the propellant.
2011Orbit™ Closure A unique two-part designThat reduces torque making it twice as easy to open compared to standard twist-off closures.
2013360 END technology used by Sly Fox BreweryEntire lid could be removedUse as drinking cup
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Market Position in 2013
• One of the largest packaging companies in the world.
• Only full-line global packaging company.• #1 producer of food cans and metal vacuum
closures in the world.• #3 producer of beverage cans in the world.• #1 or #2 producer of aerosol cans in markets
where we compete.
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Brand Building Packaging……It’s a way of life at crown.
• Net sales is $8.5 billion in 2012 against $1.8 billion in 1988.
• 149 plants in 41 countries as against 88 plants in 1989.
• Biggest threat: Plastics. ( raw material prices fluctuations)
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Current market of metal can industry
400 metal can shipping container manufactures
Together all firms generated $23.2 billion
58.1% of all aluminium cans were recycled
Highly seasonal trends
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MARKET ANALYSISENTRY THREAT (LOW)
• Easy entry• 2 piece line available for $12 M• Low profit margins
RIVALRY (HIGH) • Commodity product• Excess capacity• Low market concentration
SUBSTITUTES THREAT (MODERATE)• Low switching cost• Plastic / Glass
SUPPLIER (HIGH)• Few big suppliers• 71% of market s aluminium
BUYER POWER (HIGH)• Backward integration• Purchase large volumes• Buyers know cost
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SWOT ANALYSIS
STRENGHTS WEAKNESS
FINANCIAL STABILITY LOW COST OF PRODUCTION SOUND CUSTOMER RELATION
NO R&D NO DIVERSITY OF PRODUCT
OPPORTUNITIES THREATS
MERGER AND ACQUISITION GLOBALIZATION
SLOW GROWTH RATE SUPPLIERS AND COMPETITORS
PRODUCING IN HOUSE PLASTIC MARKET
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MARKET ANALYSIS
SWOT ANALYSIS
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IMPACT OF BUYING CONTINENTAL CAN ON MARKET SHARE
AMER
ICAN
NAT
ION
AL C
AN
CON
TIN
ENTA
L CA
N
REYN
OLD
S M
ETAL
S
CRO
WN
CO
RK &
SEA
L
BALL
CO
RPO
RATI
ON
0%5%
10%15%20%25%30%
PRE-MERGERPOST MERGER
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IMPACT OF BUYING CONTINENTAL CAN
DOMESTIC OPERATIONS WOULD DOUBLE
INCREASING GLOBAL PRESENCE
STEP IN PACKAGE OPERATIONS
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DIVERSIFICATION IN PLASTICS :Market analysis
Market Segment (1980-1998)
Y_O_YPlastic (%
mkt share)Metal Can(% Mkt Share)
Glass (% Mkt Share)
1980 8 27.7 64.3
1983 11 38.8 50.2
1986 14 49.9 36.1
1989 18 61 21
1992 19.5 62.5 18
1995 21 64 15
1998 22.5 65.5 12
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PROS AND CONS for Diversifying into Plastic Industry
S.No Pros Cons
1 Increasing market share Material requires for retaining carbonation
2 Light weight & Convenient Handling Preference for flat base containers by soft drink industry
3 Declining Resin prices
4 Easy substitute for glass based containing solution :food ,beverages ,beauty, pharmaceutical
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Strategy Adopted :Recombining
• 1990 Consolidation BeginsCrown acquires major portions of former industry leader Continental Can Company and becomes the North American packaging leader.
• 1992-Getting into Plastics Crown Cork & Seal acquires CONSTAR International, a world leader in PET plastic containers for the beverage, food and household markets.