CROWN CORK & SEAL IN 1989 Essay Example | Topics and Well Written Essays - 500 words

CROWN CORK & SEAL IN 1989 - Essay Example When Avery assumed control of Crown in 1989 after over three decades of stewardship by Connelly, he was confronted with reviewing/changing the company strategy in view of the on-going industry challenges as mentioned above, the sluggish sales growth and declining operating margins (Bradley, 2005, HBS Case # 9-793-035). Five force analysis Porter’s Five Force Analysis tool best fits the analysis of this case. According to this tool, an industry (and by inference a unit within that industry) is under the influence of five forces that determine its competitiveness and hence, its profitability: customers, suppliers, existing competitors, substitute products and potential new entrants (Porter, 2004, p.5). Customers and suppliers can bargain over prices, spreading their options over rivals; rivals can leverage strategies to cut into market share; substitute products can compete on prices; demand-supply mismatch and/or good profitability can attract new entrants.