For the exclusive use of M. HUSSAIN Harvard Business School 9-582-103 Rev. September 24‚ 1985 Sealed Air Corporation The president and chief executive officer of Sealed Air Corporation‚ T. J. Dermot Dunphy‚ explained the firm’s 25% average annual growth in net sales and net earnings from 1971 to 1980: The company’s history has been characterized by technical accomplishment and market leadership. During the last 10 years we built on our development of the first closed-cell‚ lightweight cushioning
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Case Writeups : Sealed Air Corporation 1) What has been happening in this market? How has Sealed Air (SA) been doing? To what do you attribute SA’s success? Sealed Air had achieved 25% annual growth in net sales and net earnings from 1971 to 1980. The company has been keeping a technical leadership position in the market. During 10 years‚ the company built on its development of the first-cell‚ lightweight cushioning material‚ introduced the first foam-in-place packaging system‚ and engineered the
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in Sealed Air Corporation’s best interest to introduce an uncoated bubble product in the packaging market. The company was built on pioneering and innovation‚ therefore replicating a competitor’s existing product runs contrary to the firm’s philosophy. Financially‚ the opportunity is small relative to global packaging sales‚ and the contribution margin in the uncoated product line will put pressure on the company-wide gross margin. Sealed Air Corporation With its product‚ AirCap‚ Sealed Air has
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Sealed Air Corporation’s Leveraged Recapitalization 1) Was it a good idea to undertake a leveraged recapitalization in the context of its changing environment? Sealed Air had traditionally neglected manufacturing in favour of marketing‚ they were able to do this because of a lack of competition‚ however mid-1980s increased competition and expiring patents on products. Sealed Air reacted to this increasing competition by introducing the WCM-World Class Manufacturing program which promoted manufacturing
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Sealed Air Corporation Case Study Sealed Air Corporation Case Study Industry Manufacturing Overview Sealed Air is a leading global innovator and manufacturer of a wide range of protective packaging.With widely recognized brands such as Bubble Wrap cushioning‚ Jiffy protective mailers‚ Instapak foamin-place systems and Cryovac packaging technology. Sealed Air continues to identify new trends‚ and deliver innovative solutions to its customers in 51 countries. In the fast paced technology
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1. What are the problems? Market leadership and technological innovation have marked Sealed Air’s participation in the U.S. protective packaging market. Several small regional producers have introduced products‚ which are less effective than Sealed Air’s but similar in appearance and cheaper. The company must determine its response to this new competition. The company is faced with a difficult choice of choosing from a range of feasible options ranging from doing nothing to introducing a new product
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Sealed Air: Primary Problems: The primary problem for sealed air was their overzealous product focus with a lack of consumer focus. Sealed Air was practically the sole maker of air cap cushioning with virtually no competitors. Their competitors were selling uncoated bubbles at half the price and starting to grab market share in Europe and the U.S. Sealed Air was too concerned with their “saran barrier coating” which caused product myopia. Having the most innovative product in the industry is great
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HBS Case: Sealed Air Corporation Background/Facts: Sealed Air Corporation is known for its technical accomplishment and market leadership in the protective packaging market. Sealed Air Corporation specifically prided itself on producing Air Cellular Products‚ AirCap. These products were cushioning‚ clear‚ laminated plastic sheet containing air bubbles of uniform size. The feature that differentiated AirCap cushioning from all other bubble products was its “barrier coating” which meant that each
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1.0 INTRODUCTION The Sealed Air corporation is committed to market leadership through technological innovation. Ten years ago‚ the company was first to market with a highly successful coated air-bubble packaging protection product‚ AirCap. However‚ market trends indicate a rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated product. Burgeoning demand for uncoated bubble poses a direct threat to the long-term viability of the technologically superior‚ premium
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Decision for sealed air corporation Situation analysis As a leading company in cushioning industry who had the advanced technology and possessed most market share in US and England‚ Sealed Air Corporation had been facing challenge of other competitors who nipping away their market share by supplying substitute products of uncoated bubbles with lower price. If there was no response offered by Sealed Air Corporation‚ they would lose 50% of its current market occupancy within three years according
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