Focus III

...capture a larger amount of the value it creates for it's customers.

Putting soda in a can isn't all that much of a big technical feat.  Crown isn't the only company that can do this.  Why would that be a high-profit business?  Harvard Business School case writers and stock analysts all say Crown's strategy is to focus on hard-to-hold applications.  But suppose that we are very stubborn and want to do our own analysis.  If you are serious about strategy work, you must always do your own analysis.  A strategy is not necessarily what the CEO intended or what some executive says it is.  Sometimes they are hiding the truth, sometimes they are misstating it, and sometimes they have taken a position as leader without really knowing the reasons for their company's success.

Identifying strategy begins by looking at each policy of a company and noticing those that are different from the norm in the industry.  Then figure out what the common policies are targeted on accomplishing.  In the case of Crown, two policies are technical assistance and  rapid response.  Major beer companies probably don't need much technical assistance with cans and can probably teach the can companies a thing or two.  Technical assistance is what is needed by smaller companies.  Rapid response may be aimed at smaller companies or even seasonal orders or the introduction of new products.

On the manufacturing front, Crown's plants are smaller and all have at least two customers, unlike the larger can makers who tend to focus on one big customer for the benefit of the longer runs.   Crown's manufacturing policies are aimed at speed and less production per customer.  Crown's policies, technical assistance, rapid response, less production per customer, speed and rush orders all combine to make them an expert at doing short runs.   Crown isn't the biggest can maker, but it makes the most money.  As a result Crown is not captive to a single large customer and is able to capture a larger amount of the value it creates for it's customers.

ACTION POINT:  Craft policies that create the most value for your customer.