CanPack is a leader in the beverage packaging industry in the European Economic Area with an annual output of 25 billion beverage cans. The company faces a profitability threat due to instability in product pricing.
- CanPack is a leader in the beverage packaging manufacturer industry in Central and Eastern Europe. The company is continuously strengthening its market position in Western Europe.
- The company has over 30 years of experience in the beverage packaging industry and claims to have evolved into a leading global manufacturer of metal packaging.
- With an annual output of 25 billion beverage cans and 28 billion pieces of bottle closures, CanPack is one of the four top global manufacturers of beverage cans.
- CanPack offers a competitive pricing system allowing it to become a formidable force among competitors.
- The company has twice been awarded the Silver Can of the year due to the Quadro-mix, Thermo, and Tactile effect of its can products.
- Compared to top competitor, Ball Corporation, CanPack has a limited number of production plants in Europe which are situated in the Eastern region. This means that the company lacks geographical coverage in Europe.
- According to the European Economic Area (EEA) report, "Volume-wise, CanPack is considered to be a minor player in the market and are not suitable for delivering higher volumes."
- In order to get to the majority of customers, CanPack has to deliver its product over a long distance exposing them to late delivery and inability to meet up with short-term deliveries.
- The company will be launching a 25 billion can-units production plant in the Stříbřo, Plzeň Region, Western Czech Republic, creating an opportunity for the firm to reach more customers located in the area.
- Through its strategic partnership with drinks and packaging companies such as Asahi Group and San Miguel group, the company is opportune to expand its width throughout Europe.
- The 2017 agreement to reduce and harmonize conversion cost between competitors in the EEA opens up more opportunity for profitability.
- The company has no back-up production plant leading a decrease in inventory whenever there is downtime.
- According to CanPack, they are unable to meet customer requirements in Northern France, the Benelux, and Germany in terms of flexibility and in-time delivery due to proximity delivering from Poland. This creates an avenue for competitors to take over the market.
- Instability in the product pricing due to aggressive pricing and fierce competition with Rexam pose a profitability threat for the company in the EEA.
- The company faces a grave threat in supplying products to Germany due to fierce competition with Ball and Rexam.