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 …show more content…
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
It is critical for Sealed Air to introduce uncoated product if desire to maintain the market leader’s position, with existing machinery and technology, it would not require extra effort to produce uncoated products but have comparable production costs to competitors. As several distributors has been demanding uncoated products from Sealed Air, it seems reasonable for the company to start producing it, it would increase loyalty from the distributors and allow Sealed Air to have a more complete range of products with affordable prices for high to low-end customers. Sealed Air has already lost some market share and showed signs of continuous decline in the market’s position, uncoated product will be a ticket back into the game, it is likely to
The case opens with an 8:15 AM meeting among several key people at the Danbury, Illinois plant of the Floor Care Products Group of Atlas Industries Worldwide. The group consisted of the following persons:
From 1976 to 1982 the compound annual growth in net sales was 18.5% and the compound annual growth of after tax profit was 25.9%. Therefore, a 10% net sales growth shown in the proforma financial data seems reasonable.
• Sales fluctuate due to the frequently cyclic nature of the industry but they aim to remain above 3 million annually.
unnoticed by the securities markets. Indeed, the company’s market value grew from less than $30
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
The higher margin products also miss a benefit either in fungi or smell reduction. Why should Rohm & Haas expect large volume sales and scale economies on the industry quality leading product when it’s offered on the dollar menu? The distributors operate a toll-booth and the highest bidder gets to pass. Rohm & Haas needs a competitive value proposition that cannot be refused.
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.
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.
Since the launch of our company, it has been experiencing a rise in sales, mostly due to its new product, Kids Mat, which is a silicone plate (or bowl)
De Havilland is a Canadian aviation company that is in the process of determining how to contract out the supply of its flap shrouds and equipment bay doors for its Dash 8 aircraft. Its current supplier, Dollard Plastics is believed to be charging a large premium over market price and for that reason, a completive tender was issued to test De Havilland’s hypothesis. After receiving bids from 9 companies, a strategic review of De Havilland’s options and alternatives was conducted. Based on this review, it is recommend De Havilland ceases its contractual relationship with Dollard and instead enters into a contract with Marton Enterprises. Although entering into a contract with Marton puts forth the issue of whether or
Amvac use a very reasonable and intelligence strategy when compared with a look of active trading. It has the undesirable products of the organization and investigate new niches can generate revenue and profit. Amvac business sense astonishing in this aspect and proved to be very successful, but the management of environmental quality does not seem to be ignore by Amvac. There are many examples that Amvac has submitted certain products continued after the risk of using products or pesticides so prove dangerous
Hearst and the business team have three options, on one hand a line extension or new product positioned against Plax could be introduced into the market and in the other hand doing nothing and just looking at claims other than “breath” instead of adding a new product. Launching a new product “new pre-brushing rinse,” for example would cannibalize a part of Scope sales, also the delivery, marketing and capital costs of P&G will increase if a new rinse was launched and the user of Scope would be confused since he/she saw in the old scope a breath refreshment, taking into consideration that the new rinse is not any better than Plax in reducing plaque, but at the same time it may increase the market share of P&G and increase its profit. Whereas adding a new claim for Scope would not increase the volume of sales, but it could prevent current users of Scope to switch and it would stabilize the
Due to the quality of its products, Bel has maintained an eminent reputation and its market shares grew constantly and steadily over the past years through an efficient distribution network’s everlasting commitment to fulfil the customer’s needs and meet their every expectation.
Changes witnessed over the last few years on mode of packaging and its economic impact.