Vershire Company manufactures beverage containers and is one of the largest manufacturers of aluminum beverage cans in USA.
The industry value chain:
Purchase Raw Materials ( Produce Cans ( Distribution ( End Customers (Beverage Processors)
Porter’s 5 Forces:
|Suppliers |Four companies supplies aluminum; not many but still can choose. |Medium | |Customers |Most customers have between two and four suppliers to choose |High | | |from. | | |Threat of New Entrants |Minimum capital for equipment is 100 million dollars. |Low/Medium | |Substitutes |Few substitutes |Low | |Rivalry |Hundred-plus firms are in the industry and differentiation is |High | | |little. | |
|Strengths |- Aluminum can division’s growth in sales outpaced others. | | |- Aluminum plants scattered through out the United States & each plant served customers in | | |its own region. | | |- Encompass broad product categories | |Weaknesses |- Same technology & quality with competitors | |Opportunities |- Five beverage container manufacturers account for 88%...
Please join StudyMode to read the full document