Crown Cork And Seal In 1989
Buyer Power: In the metal can industry there are many producers of metal cans, however, they suffer from low product differentiation. There are few product options available to the multiple buyers, which increases buyer power. In addition, the producers provide cans to only a few large-sized buyers, which have a total market power of $12.2 billion. The 10 largest buyers represent approximately 30% of the market, making the large scale buyers highly coveted by the producers. Further, buyers can purchase cans from any producer with low producer switching cost and can have relationships with multiple producers. This enables the buyers to control prices very efficiently and respond to poor producer customer service quickly. Additionally, buyers are not the end users and, therefore, have the incentive to control prices more. Finally, buyers have the ability to backwards integrate and produce their own cans, which puts additional pressure on the producers to push costs below the......
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Approximate Word Count: 692
Approximate Pages: 3 (250 words per double-spaced page)
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