Crown Cork and Seal was a leading metal container manufacturer that focused on enhancing its existing product line, expanding in the US and abroad, and providing high customer service, which led to increased sales and profit growth. The metal container industry was changing with more manufacturers integrating backward and new materials like aluminum replacing tin. Crown succeeded by sticking to its core business while larger firms that diversified lost out. The document recommends Crown strengthen R&D, embrace new technologies, and diversify into related product lines to continue its success.
Crown Cork and Seal was a leading metal container manufacturer that focused on enhancing its existing product line, expanding in the US and abroad, and providing high customer service, which led to increased sales and profit growth. The metal container industry was changing with more manufacturers integrating backward and new materials like aluminum replacing tin. Crown succeeded by sticking to its core business while larger firms that diversified lost out. The document recommends Crown strengthen R&D, embrace new technologies, and diversify into related product lines to continue its success.
Crown Cork and Seal was a leading metal container manufacturer that focused on enhancing its existing product line, expanding in the US and abroad, and providing high customer service, which led to increased sales and profit growth. The metal container industry was changing with more manufacturers integrating backward and new materials like aluminum replacing tin. Crown succeeded by sticking to its core business while larger firms that diversified lost out. The document recommends Crown strengthen R&D, embrace new technologies, and diversify into related product lines to continue its success.
FACTORS AFFECTING COMPETITION IN METAL CONTAINER INDUSTRY
Increasing Self Manufacturers- Backward Integration New Material Introductions-Shift from Tin to Aluminium Package revolution- Containers used as an advertising vehicle CROWNS STRATEGY Focussed on enhancing existing product line Expansion within the US and investment abroad High level of customer service ADVANTAGES OF SMALLER FIRMS OVER BIG CORPORATES Big corporates lost out when they attempted to diversify Crowns sales growth and profit growth increased as they stuck to their core business RECOMMENDATIONS TO MANAGEMENT Strengthen R&D and embrace new technological changes Diversify into related product lines