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    Crown Holding's Analysis

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    Please assist with the following for Crown Cork (http://www.crowncork.com):

    1. Assess Crown Cork's profitability within the industry and identify any threats or opportunities; perform a General Force analysis.

    2. Utilize Porter's "5 Forces Model" to analyze Crown Cork. Examine and articulate threats of entry, the power of suppliers and buyers, threats of substitute goods, and rivalries among existing competitors.



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    Solution Preview

    Crown began inception in 1892 when William Painter patented the 'crown cork' and then started Crown Cork & Seal Company of Baltimore. Painter invented a better way to package soft drinks and beer. His vision revolutionized the bottling industry. With Painter's innovation and leadership, Crown Holdings became a world class company it is today and is the leader in industry with innovative packaging technology (Crown Holdings, Inc. 2013).
    Crown manufactures packaging products from 139 plants located in 41 countries. Their business-level strategy includes growth, diversification, and quality improvement processes while focusing on keeping costs low. In addition, through a series of acquisitions and mergers, the company increased its sales from $1.9 billion in 1989 to $8 billion in 1997. The company began to enter new markets and introduce new products and was the leader in research and development activities in the market (Crown Holdings, Inc. 2013).
    Profitability Analysis
    In 2002, Crown completed the sale of 89.5 percent of its shares in Constar (a subsidiary of Crown) through its Initial Public Offering by Constar. By 2003, Crown completed a $3.2 billion refinancing plan and forms Crown Holdings, Inc. as a new public company (Crown Holdings, Inc. 2013).
    Crown Ball Corp Rexam Silgan Holding's Inc.
    Market Cap 5.94B 7.17B 6.68B 2.68B
    Employees 22,800 15,000 11,000 9,000
    Qtrly Revenue GrowthYOY 0.04 0 0.01 0.03
    Revenue 8.62B 8.59B 6.97B 3.7B
    Gross Margin 0.17 0.18 0.45 0.14
    EBITDA 1.10B 1.15B 1.02B 502.48M
    Operation Profit Margin 0.11 0.10 0.11 0.09

    Source: Yahoo Finance, 2013
    Crown's main competitors are Ball Corp, Rexam, and Silgan Holding's Inc. Crown has more employees than its competitors and a lower market cap than Bail and Rexam. The market cap indicates the total dollar value of the firm's outstanding shares. Although Crown ...

    Solution Summary

    This paper provides an analysis of Crown Holdings both ratio analysis and Porter's five force model.