Vershire Company

1231 words, 5 pages

Intro Sample...


This dual benefit is probably the reason aluminum beverage cans now account for virtually all of the beverage can market, and most of the total single-serve beverage market . Due to more than 10,000 recycling centres nationwide, two-thirds of the aluminum cans produced are recycled. The industry has done its part in reducing the weight of aluminum cans by about one-third and continuing to raise awareness of the value of recycling to increase the practice of recycling even more. Today, aluminum is the most commonly recycled post-consumer metal in the world. Thirty parents company own the 202 metal can manufacturing facilities ( which 138 in the Middle East of the USA) in the beverage can market in USA. It is a very competitive oligopoly market with five beverage container manufacturers accounted for 88 percent of the market. There are high entry barriers whereas the minimum efficient scale for a container plant is 5 lines with 20 millions dollars a line in equipment. It is a very competitive market. Vershire Company: place & critical success factors: Vershire Company, a diversified packaging company, has several major divisions including the Aluminum Can division which is one of the largest manufacturers of aluminum beverage cans in the United States. The division has plants scattered throughout the country producing several different sizes of cans for a range of customers. Even on the top manufacturers, competition on this market is really hard. In fact, most of customers have between 2 and 4 suppliers and spread purchases among them. Moreover one large beverage company produced one-third of its own container requirements and ranked as one of the top five beverage container producers in the industry. Aluminum Can division has a great place in this market whereas it is on the top five too. All aluminum can producers employee essentially the same technology, and the division’s product quality is equal to that of its competi View More »

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