Sealed Air Case Essay

1291 Words Aug 25th, 2012 6 Pages
Sealed Air Corporation has been the market leader in the protective packaging market for many years. Unanticipated competitors have entered the market offering uncoated bubble packaging which has gained significant market share from Sealed Air’s AirCap® coated bubble packaging material. To regain market share and expand Sealed Air’s business, a swift strategy of introducing uncoated bubble products needs to be implemented. By leveraging their large distribution network and existing manufacturing infrastructure, Sealed Air can capture the price-sensitive customers before their competitors have time to expand.
Sealed Air prides itself on being the market leader and fostering technology leadership. It markets a superior product for
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In that case, Sailed Air would perform in a safe zone with well-known products and respect its culture of innovative products manufacturer. However, we found that this strategy would not acknowledge the reality of the change in the market, which is the strong demand of cheaper product and the growing presence of GAFCEL. Eventually, Sealed Air could compromise its leadership by allowing GAFCEL to develop and expand to become a significant market player.
2) Merger or Acquisition to defend market share. Considering two options: a) Acquire its closest competitor and licensee Astro Packaging. This operation would allow Sealed Air to get a critical size and increase its revenue to mitigate the impact of the raise of GAFCEL. The disadvantage of this option is that it won’t provide a significant competitive advantage due to inferiority of Astro’s manufacturing process. b) Merge with GAFCEL. By this mean, Sealed Air would enlarge its portfolio of products with uncoated products, diversity its workforce, and take advantage of the technological innovations of GAFCEL. The downside of this approach is that it bears significant financial and organizational risks.
3) Introduce uncoated bubble product variety.
The last option is to enter the market of uncoated products. We think that this is the right response for Sealed Air in this situation. The investment in PPE required to produce uncoated products are limited. Therefore, the battle will be