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sealed air corp.
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Decision: Market leadership and technological innovation have been the key forces for Sealed Air's success 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. Feasible options range from doing nothing to introducing a new product. Introduction of the new product i.e. the uncoated bubble raises 2 big issues: • Product line management issues • Development of a new marketing plan After reading the case we believe that Sealed Air Corporation is at an advantage if they continue with the coated bubble packaging market. This will lead to Specialization which will lead to better products and better services to customers. Following are the factors that have aided us in our analysis to arrive at this decision: S.W.O.T Analysis: From the S.W.O.T analysis (please refer to exhibit A), we have understood that Sealed Air will have to work on their weaknesses and further develop their strengths. Therefore; we would advise Sealed Air Corp. to concentrate on their marketing strategy especially educating their consumers about their products. For the first time, shippers could create "just-in-time" packaging. Instapak packaging also addressed issues of material cost, space savings, and efficient material handling, as well as, helping many companies control freight expenses. Nature of demand for the product: From the case we understood that the consumers preferred coated packaging material, i.e. the quantity demanded was high. This can be clearly understood by the following facts: • In 1980 Astro’s sales were approximately $10.5M compared to Aircap’s Cushioning’s $25.35M. • Despite the high cost sealed air managed to capture 90% of the U.S. market share. The company should take advantage of the high demand for its product in the coated bubble market instead of being “Jack of all, master of none!” The following Financial Analysis will help us understand how the company will benefit with respect to its costs and profits if they continue to remain in the coated bubble market. Financial Analysis: After looking at the financial statements alone, the figures suggest that staying in the coated bubble market would be the most profitable. Sealed Air Corporation has a market advantage in the coated market because of its experience and already established competitive advantage. The following chart shows that sales have increased steadily over the time period being studied. If they continue with their current market strategy, future sales will continue to rise. Sealed Air corp.
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