This document discusses Crown Cork & Seal's strategy and growth from 1989 to 2013. It began as a metal container manufacturer but diversified into plastics and other packaging through acquisitions. Major acquisitions included Continental Can's European business in 1990, Constar plastic container business in 1992, and CarnaudMetalbox in 1996, making it the world's largest packaging company. The company innovated new product lines, grew its international presence through acquisitions, and increased sales from $1.8 billion to $8.5 billion from 1988 to 2012. However, it faced threats from substitutes like plastic and glass.

1. CROWN CORK AND SEAL IN 1989
GROUP 2:
Suman Paul

2. METAL CONTAINER INDUSTRY
 61% OF PACKAGED PRODUCTS
 3 PIECE CAN TO 2 PIECE CAN
 STEEL BODY TO ALUMINIUM

3. INDUSTRY STRUCTURE
 PRICING
 CUSTOMERS
 DISTRIBUTION
 MANUFACTURING
 SUPPLIERS

4. INDUSTRY TRENDS
 IN HOUSE MANUFACTURING
 PLASTICS
 GLASS
 SOFT AND ALUMINIUM CANS
 DIVERSIFICATION AND CONSOLIDATION

5. CONNELLY’S STARTEGY
 PRODUCTS AND MARKETS
 MANUFACTURING
 RECYCLING
 R&D
 MARKETING AND CUSTOMER SERVICE
 FINANCING
 INTERNATIONAL
 PERFORMANCE

6. 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 packaging
Becomes the world's packaging leader.
2000 : Innovation in Sealing system
Crown 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

7. 2005
Crown sells its Global Plastic Closures business.
2008-Environmental friendly product:
EarthSafe™ Dispensing System
Replaces hydrocarbons with compressed air as the propellant.
2011
Orbit™ Closure
A unique two-part design
That reduces torque making it twice as easy to open compared to standard twist-off closures.
2013
360 END technology used by Sly Fox Brewery
Entire lid could be removed
Use as drinking cup

8. 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.

9. 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)

10. 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

11. MARKET ANALYSIS
SUPPLIER (HIGH)
Few big suppliers
71% of market s aluminium
•
•
•
•
•
•
•
•
•
•
•
ENTRY THREAT (LOW)
Easy entry
2 piece line available for $12 M
Low profit margins
RIVALRY (HIGH)
Commodity product
Excess capacity
Low market concentration
BUYER POWER (HIGH)
Backward integration
Purchase large volumes
Buyers know cost
•
•
SUBSTITUTES THREAT (MODERATE)
Low switching cost
Plastic / Glass

12. 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

13. MARKET ANALYSIS
SWOT ANALYSIS

14. IMPACT OF BUYING CONTINENTAL CAN ON
MARKET SHARE
30%
25%
20%
15%
10%
5%
0%
PRE-MERGER
BALL CORPORATION
CROWN CORK &
SEAL
REYNOLDS METALS
CONTINENTAL CAN
AMERICAN
NATIONAL CAN
POST MERGER

15. IMPACT OF BUYING
CONTINENTAL CAN
 DOMESTIC OPERATIONS WOULD DOUBLE
 INCREASING GLOBAL PRESENCE
 STEP IN PACKAGE OPERATIONS

16. DIVERSIFICATION IN PLASTICS :Market
analysis
Market Segment (1980-1998)
Y_O_Y
Plastic (% Metal Can(%
mkt share) 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

17. 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

18. Strategy Adopted :Recombining
• 1990 Consolidation Begins
Crown 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.