Sealed Air

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1. What has been happening in this market? How has Sealed Air (SA) been doing? To what do you attribute SA’s success? a.In the protective packaging market, there were…
-A change in packaging material from heavy, paper-based products which had dominated the market to air contained products -A growth in the uncoated bubble market
-An unanticipated competition from several small companies which invented manufacturing processes similar to that of Sealed Air and produced cheap products. b.Sealed Air has been enjoyed the technical accomplishment and market leadership with 25% average growth in the net sales and net earnings from 1971 to 1980 by … -Differentiating itself from other competitors through “barrier-coating” technology -Developing products with an assessment to customer’s needs. (diversifying it’s product line) -Patent protection and licensing to only one company

-Using powerful sales force which had a consultative selling approach (well-trained with knowledge for the industry etc.) -Partially because of packaging mentality (in the U.S market)

2. Should SA introduce an uncoated bubble to compete with GAFCEL? Why or why not? I think it’s better for SA to enter the uncoated bubble market because.. a.The uncoated bubble market will increase, so the market could be a source for future cash inflow -Although SA maintained a dominant position and good profitability in packaging market in the U.S, the rate of growth was getting more slower. Moreover, SA needed to recoup the market share which SA had given to it’s competitors in Europe. -Price was a key factor for purchase decision making. Therefore the uncoated product which was relatively cheaper than coated product got to be more attractive. b.SA didn’t need extra capital investment for entering that market -SA had conducted a great deal of research on manufacturing for uncoated products and already knew the best production process for uncoated bubble products -SA could begin manufacture of...
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