Sealed Air vs. Gafcel Essay

4227 Words May 21st, 2005 17 Pages
2. SUMMARY

The protective packaging market is becoming more competitive.

Sealed Air company is encountering a growing number of competitors in its field. Similar or alternative systems are now proposed against those of Sealed Air. These new systems are often cheaper but as argued by Sealed Air less effective concerning the protection they offer and therefore less cost-effective.

A new company (GAFCEL) has entered the market with an uncoated product and is having success on the New York, California and Ohio market. Sealed Air will face further erosion of its US market share.

Based on the analysis of the AirCap® product as well as on the analysis of the market, we will answer questions regarding Sealed Air's reaction to its
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air bubble market. The company has increased its sales from [$] 7.7 million in 1972 to [$] 25.3 in 1980 and figures written in the case study show that it is well ahead of its main competitors.

On the other hand, because of a different mentality and the crucial importance of price which influences the type and the quality of the protective material, Sealed Air is losing market shares in Europe.

Sealed Air has the technology to launch uncoated products which will maintain its leadership in the US market and reverse the decreasing tendency in the European market.

3.3 Should Sealed Air introduce an uncoated product?

What are the Pros and Cons ?

Level-headedness are the following: 1 not important, 2 important, 3 very important.

PROS CONS
- easy and quick to make on old machines
- production process identical to Pool Blanket
- New Jersey close to New York market
- comparable production costs to competitors
- respond to the demand from distributors
- success from GAFCEL at Astro's expense only
- SIBCO already produces uncoated in France
- growing polyethylene air bubble market
- increase

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