Sealed Air Harvard case Marketing

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1. Describe the corporate culture at Sealed Air. What is its business model? How do they make money?
Since its start Sealed Air’s goal has been a position as a market leader and as a constant technology developer. Doing things first was always the main idea. This strong idea of being market leader was also inspired by greater and sustainable profits which have always been assured for the market leader. Continuing analysis of customer needs was based on this corporate behavior which always took place just after the production initiation. Even in terms of attention paid to customer desires ,Sealed Air was one of the first. Customer oriented approach was an important matter also because educating the customer about advantages of the
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First, since the firm has been a “historic champion of barrier-coating”, starting producing a product which has been characterized by the very firm as weaker and lower quality would go against the very major message of the company and its cost-effectiveness approach. This would at least put under question mark the image of the company and its philosophy, at most render almost futile all its market education efforts of more than a decade. Anyway, as mentioned, GAFCEL’s success did not come about as a result of creating additional market but rather of gaining a portion of market previously occupied by Astro. It is not that the profit margins were low for the uncoated products (indeed, these hovered around 60-70%), but the change in the product line would have been against the whole idea of Sealed Air. And the firm had very good brand awareness and the American customer was opting for quality and cost-effectiveness.
In contrast to the American market, the emergence of new competitors on the European market seemed to have the potential of a much more powerful impact. The European customer was not that “educated” about the product and many regarded packaging supplies as “expendable commodities”, making the price in this market a key driving determinant of purchase choice. In this context, the decision to diversify by enlarging the product line into uncoated bubble packaging material would have a lesser effect on firm’s image. Also, faced

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