1. What are the key strategic issues that Avery needs to consider? What strategic options are open to him?
After a long run in the metal/aluminum container industry Avery now, needs to consider if it’s the right time to break into the market of the plastic closures and glass containers in order to be able to be competitive in this industry. Some of the strategic options open to him are whether or not get involved in the bidding for Continental Can. The acquisition of this company would make Canada Crown the largest presence outside the United States and would double the size of Crown’s domestic operations.
2. If we are going to analyze the industry that Crown competes in, what is the appropriate industry to analyze?
In order to analyze the industry that Crown competes in, we have to focus our attention to the metal, plastic and glass container industry. The metal container industry should be analyzed because this is how Crown established itself in the container market. The plastic and glass industry should also be analyzed because this is the future for Crown.
3. How attractive has the metal container industry been over the years?
The metal container industry represented 61% of all packaged products in the U.S. and had been very lucrative for the five firms that dominated the $12.2 billion industry during 1989 with Crown Cork and Seal making up 7% of the market.
4. How well did Crown Cork do under John Connelly? What were the keys to their success?
Crown Cork was revived under John Connelly. At the time that he stepped up as president of Crown Cork the company was at the verge of bankruptcy. Once Connelly took the reins of the company the vision changed ...