Essay on Harvard Case Study - Sealed Air Corporation

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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 priced AirCap. Thus Sealed Air is situated at a critical standpoint. It can either continue to deal exclusively in the manufacture of high-end coated bubbles emphasizing performance over price, or segment the market by introducing an…show more content…
2.3 Internal Analysis Sealed Air's strengths lie in its technological leadership, which include a number of manufacturing process patents. The company has a strong global presence, and owns SIBCO, the only marketer of uncoated bubbles in France. The company has a consumer orientation, strong sales, loyal distributors, and a knowledgeable commission-based sales force that specializes in consultative selling. Sealed Air's weakness include a product portfolio that excludes uncoated bubble and is so broad it overburdens its sales personnel. The prime opportunity in the market is for the company to leverage its strengths to enter the uncoated bubble segment. The rapid displacement of coated by uncoated bubble constitutes a salient threat. A detailed SWOT analysis can be found in Appendix D. 3.0 SEGMENT EVALUATION 3.1 Arguments in Favour of Introducing Uncoated Bubble It is of critical importance that Sealed Air address the threat presented by the growth of the uncoated bubble segment, which outstrips that of coated bubble in the US and Europe. Serving the lower end of the market is consistent with the company's customer-focused market leadership and provides distributors with a full-line of product. In addition, there appear to be a number of segments that may be serviced by uncoated bubble (e.g., the ½ in. GAFCEL bubble is comparable to Sealed Air's ST/SD-120 for light loads) . Further, uncoated bubble would require minimal capital as
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