Csis Amol

What are the most significant factors affecting tilt in the surface container industry? surfacelic element container industry represented slightly 61% of the packaging industry in 1989, followed by plastics and methamphetamine packaging. Metal packaging served food, beverage and general packaging industries. Metal cans were made of steel, aluminum or a combination of both. A huge percentage of the cans were made for the beverage industry. Factors affecting competition: Pricing: The pricing within the coat container industry is actually competitive, and discounts on order volumes were huge. Also prices of Aluminum greatly located the profit margins. Also many major brewers produced containers in house, decrease the customer base. negotiate power of customers: The coat container industry had few very large customers and the can constituted 45% of the come cost of the packaged beverage. So the customers were very price peeled and uncompetitive prices and poor customer service was punished by cuts in order size. Also the soft drink bottlers and brewers maintain relationship with more than one supplier.

So the players in the metal container industry had much less power to dictate prices dissemination: Since transportation costs were significant cost component of the metal cans, the manufacturers set up their plants closer to the customers to minimize transportation costs. Bargaining power of suppliers: Although steel was much cheaper than aluminum, aluminum dominated the metal container market in 1989, due to its light weight, consistent feel and east of recycling. The countrys largest three aluminum producers supplied the metal can industry. This meant paying premium prices and even on this destroy the manufacturers were price takers. Availability of substitute: Plastics and glass containers started gaining market contribution in the packaging industry against the metal cans. However, the aluminum cans had suck advantages over plastic plastic could not hold the...

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