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Crown Cork and Seal Company, Inc. Analysis

Crown Cork and Seal Company, Inc. Analysis

  • Submitted By: ncoen69
  • Date Submitted: 03/20/2009 4:06 AM
  • Category: Business
  • Words: 319
  • Page: 2
  • Views: 3983

Crown Cork and Seal Company, Inc. Analysis Which industry does it compete in? CCS competes in the canning and packaging industry. It initially produced beer bottle cap, made of a round piece of tin-coated steel with a flanged edge and an insert of natural cork. As the canning and packaging industry grew and became more competitive, CCS’ competitors diversified their products and adopt aluminum as their material but CCS maintained its initial products: tin plated cans and crowns and specialized in metal forming and fabrication. Which industries are the key suppliers? As cans and crowns manufacturers, CCS’ key suppliers are steel manufacturers. Because CCS does not diversify the products like its competitors do, steel manufacturers are the sole supplier for CCS’ products. Key buyers? CCS mainly distributed its products to motor oil producers, until the market was taken over by its competition in 1962, due to the development of fiber-foil cans. CCS then focused on two specific markets: beverage market and aerosol market domestically and food packaging internationally. The beverage market especially is the key buyer of their bottling and canning machinery. The food packaging market abroad is the buyer for CCS’ tin-plated cans. CCS positions itself in the niche market, by offering a limited range of product in a few market segments. CCS focused on its tin-plated cans, crowns and their machineries both in domestic and international markets as packaged food became more widely accepted. These limited products only serve limited markets, which include beverage and aerosol industry in domestic market, and food packaging in international market. What is CCS’s horizontal and international scope, compared with its key rivals? Compared with its key rivals, CCS specialized its product line for the tin-plated cans. CCS also brought itself to its markets by spreading plants across the country and internationally to be closer to its customers and therefore cutting down...

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