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Anylsis Of Crown

Executive Overview
In April of 1957, when Crown Cork & Seal was on the edge of bankruptcy, John Connelly took over presidency with intent to save the company. By the end of 1957, Crown had "climbed out of the coffin and was sprinting." Connelly's unique leadership is what contributed to the success of Crown. In May of 1989, Connelly stepped down from his position as chairman appointing his long-time disciple William Avery as chief executive officer. Avery had plans to assess Connelly's long-followed strategy because of the industry changes that were taking place. Since Connelly got into the business in 1957, the metal can industry had been greatly redefined as both suppliers and customers of can makers moved into can-making themselves. With the changes that were taking place, Avery wondered if it would be a good idea for Crown to bid on all or part of Continental Can (one of their competitors), whose operations were up for sale. Avery was also faced with the decision to break Crown's tradition and increase its product line beyond the manufacture of metal cans and closures. Little growth potential was seen in the metal can industry, and plastics were forecasted as the growth segment for containers. Crown's competitors had been expanding aggressively in a variety of directions, and Connelly remained careful and thrived. Because Crown had done the same thing for so long, Avery wondered if it was time for them to change. If Crown acquired Continental Can Canada, Canada would become Crown's largest single presence outside of the U.S. and would double the size of Crown's domestic operations. However, most mergers in this industry had not worked out well, and Avery had concerns about taking two companies from completely different cultures and bringing them together.

Analysis
The use of Porter's 5 Forces Model gives an analysis of the industry for Crown Cork & Seal and an overview of where it is positioned within it. There is a strong competitive...