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: 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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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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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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more competitive. Sealed Air company is encountering a growing number of competitors in its field. Similar or alternative systems are now proposed against those of Sealed Air. These new systems are often cheaper but as argued by Sealed Air less effective concerning the protection they offer and therefore less cost-effective. A new company (GAFCEL) has entered the market with an uncoated product and is having success on the New York‚ California and Ohio market. Sealed Air will face further erosion
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question of whether Sealed Air should enter the uncoated bubble market‚ there are two possible results: If Sealed Air was to put uncoated bubble products into production‚ the sales might not be very satisfying because of the already crowded market of uncoated bubble products. The competition is fierce‚ and the many the consumers cannot tell the differences on quality‚ nor do they actually do the cost-savings mathematics. Price is their priority‚ so if Sealed Air’s uncoated bubble products are not
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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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Sealed Air Case Study Date:11/14/2011 Section:Monday Ziyu(Vivien) Gong A20269093 Wenxin (Chloe) Liu A20267862 Xinyun (Amy) Qiu A20275778 Yingqiu (Chris) Zhu A20272743 Chongliang (Leo) Zhuge A20266231 Ⅰ EXECUTIVE SUMMARY Sealed Air Corporation is the market leader in coated air bubble products in North America and even Europe. In 1981‚ the case outlined the most difficult business challenge: the rapid displacement of coated bubble by a technologically inferior yet inexpensive uncoated
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Executive Summary Sealed Air has been the market leader in the coated bubble product segment. It is considering introducing uncoated bubble product lines as it is gaining acceptance as a cheap alternative to the coated bubble product. Sealed Air may not be able to maintain and improve the current market share just by offering the uncoated bubble product. Instead‚ Sealed Air needs to introduce new uncoated bubble products at competitive prices to maintain yearly sales growth and market share.
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Sealed Air Case Comments Sealed air case is a comprehensive case that captures many issues that we have discussed in the marketing course. It is also one of the best selling marketing cases and I think for some very good reasons. Here are my comments on the case questions. Question 2: Sealed Air created value to its customers by building high performance (technical) product quality in its coated bubbles and by educating the customers about the benefits of coated bubbles through
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