What are the key strategic issues Avery needs to consider?

What strategic options are open to them?

• For a longer time, they have had a focused approach on metal tin cans and aluminum cans.

• Now, Avery needs to break into the market of plastic closures and glass containers to
compete in the market

• Since continental cans company are already in plastic and paper cups market, acquiring them
would be a good strategic option to capture the majority of market share in plastic and paper
cups industry

• Acquisition of this company would make them the largest presence outside USA and would
increase crown’s domestic operations

• Avery should continue to invest more in international domain especially in underdeveloped

countries , where people using packaged foods and cans are increasing day by day
 If we are going to analyze the industry that Crown competes in, what is the
appropriate industry to analyze?

• Avery should focus in metal, plastic and glass container industry which as a whole fall into
packaging industry

• The reason why metal container industry is to be concentrated is because, crown established
themselves first in this industry and have more customers and contacts in this industry. They
also have the required knowledge with the help of R&D team.

• Plastic and glass industry should also be analyzed because this is going to be the future for
crown
 How attractive has the metal container been over the years?

1950 
• Polyethylene was invented to be used as cable shielding material, but soon it outgrew its
original use and was used to make products such as food and garbage bags, packaging films,
and milk containers.
• In less than a decade, the demand for PE grew from 5 million pounds to 1.2 billion pounds at
the end of 1960.

1960
• Reynolds and Alcoa made all - aluminium cans out of one piece of metal. This solved the
problem of weights of cans, now only a lid needed to be attached.
• This provided impetus for invention of rip-off closure and the pop-top lids on aluminium cans.

1970
• 1977 — Polyethylene Terephthalate (PETE) invented as material for beverage packaging is
today one of the most commonly used plastics
 How well did Crown Cork do under John Connelly? What were the keys to
their success?

• At the time he stepped up as president, the company was at bankruptcy. Crown cork got
revived under Connelly.

• He changed the vision of the company from diversified approach to focused approach.

• The company concentrated on cost efficiency, quality and customer service

• This was done by recognizing crown’s position as a small producer and developed a product
line built around the company’s traditional strengths in metal forming and fabrication.

• Connelly closed inefficient large fabrication plants and increased small line plants in many
domestic locations nearby to customers.