Focus II

It has great customer service, lots of technical assistance for customers and great responsiveness, with an emphasis on speed. 

To begin identifying a company's strategy it is usually most helpful to examine the competitive environment.  That is, to look at how the competitors make their livings.  In the Crown case, there are three major can companies: Continental Can, National Can and American Can.  Most beverage companies had at least two sources of can supply.  Further, can manufacturers often set up plants to supply a particular customer.  There is a very direct competition between close by can makers, whose products have to be essentially indistinguishable.  Big can makers have accepted being captive producers because of the benefits of long production runs--there is a large cost to changing a line from making one type of can to another.  Major can companies have very log profit rates--4 to 5 percent return on assets. 

Crown on the other hand beats the big three by a substantial margin.  On average it seems to be fifty to sixty percent  more profitable.  Crown specializes in hard-to-hold applications-aerosols and soft drinks.  It has great customer service, lots of technical assistance for customers and great responsiveness, with an emphasis on speed. 

ACTION POINT: Strategy is sometimes not what it appears to be as will be seen in the Crown example if you stay tuned.