Sealed Air Case Study

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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 product. Considering the current market trend, we recommend that Sealed Air should instantly enter the uncoated market to maintain its leadership position in the market by cover more segments catered the price conscious group. Besides, we suggest…show more content…
The potential market could bring large profits. Sealed Air’s estimate of GAFCEL sales rates was $750,000 per year for the 1/2-in.-high uncoated bubble and $250,000 per year for the 3/16-in. bubble. (2) The ability of Sealed Air to provide uncoated bubble. • The technology /The convenience to obtain The company could run on machines used for another Sealed Air product. Thus, the firm could begin manufacture of an uncoated product quickly in its New Jersey plant. • The cost of production Sealed Air could produce an uncoated bubble as cheaply as GAFCEL within a month with no major capital investment. 2. Build a sub-brand under the Sealed Air: (1) In order to keep the premium image of Sealed Air (technology leader) Sealed Air ‘s competitive advantage is technology. Sealed Air should consider not influence the market share of coated bubble while producing the uncoated one. It is necessarily to differentiate the uncoated and coated bubble in the mind of consumers. (2) The different marketing strategies can be used through different brand names. For instance, marketing strategy can be applied in Europe market and U.S. market differently because the different target needs. 3. Decrease the production of some types of Air Cap: Since there is little difference between thin coated products and uncoated products, the thin coated products will be generally replaced by the company’s new uncoated ones. By dropping

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