MGT492H5 Lecture : MGT492 Presentation notes

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1 Feb 2012
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Substitutes there exists the option of switching to plastic or glass which has there advantages. This threat is very strong for this industry, which results mainly from the existence of plastic and glass containers. The growth of plastic containers is the industry"s major worry; mainly because it is more lightweight and convenient than metal cans or glass by consumers. Glass accounted for only 14% of domestic soft drink sales, trailing metal cans at 75% The area where glass outperformed metal was in the beer category where consumers grew accustomed to the long neck bottle design. Complements: - throughout the 1980s, the soft drink industry emerged as the largest user of packaging, and in 1989, the soft drink industry accounted for 42% of metal cans shipped in 1989. By the end of the 190s, aluminum soft drink cans had a 12% average annual growth rate, in a decade that experienced only a 3. 6% increase in total gallons of soft drinks consumed.