Alvaro Garcia Alvaro Garcia Intro to Case Crown Cork and Seal has emerged out of bankruptcy because of John Connelly’s great leadership skills. In 1989 he stepped down and Bill Avery took his position. When Avery took charge, he was faced with a metal container industry that had been through many changes. The companie’s not only had to compete with each other, but also with their suppliers and customers who have managed to enter into this industry on their own by participating in in-house manufacturing. At the time Avery was appointed, he was facing many challenges within the industry and many hard choices to make. Many predicted that a plastic was the growth segment for containers and this left Avery with a decision of whether he should expand the product line or just keep the core traditions of the company and remain the same. Through this analysis we will see what some strategic issues Avery needs to consider, the industry’s attractiveness using Porter’s five forces, we will see how Cork did under Connelly and what has changed since Connelly’s time. Porter’s Five Forces Metal Container Industry {draw:frame} {draw:frame} {draw:frame} {draw:frame} {draw:frame} Supplier Power Steel less expensive, but aluminum is preferred choice and mostly controlled by 3 producers. Buyer Power Composed of few very large buyers such as Coca-Cola, Anheuser-Busch, Pepsico Inc. These Companies maintains relationships with many suppliers. Barriers to Entry Startup and Manufacturing costs are high and industry controlled by few industries. Substitutes There exists the option of switching to plastic or glass which has there advantages. Rivalry Five firms dominate this industry with a total market share of 61% By using Porter’s Fiver Forces, we can see how the industry operates and what type of environment it is in. Rivalry in this industry is high, as there are only five firms that dominate this $12.2 billion U.S steel metal can industry in 1989 with a market...