Sealed Air Case Study
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 that it should create a sub-brand for the uncoated product to protect its parent brand image, and decrease the production of thin coated products, which can be substitute by the uncoated one.
Ⅱ INTRODUCTION A decade ago, Sealed air Corporation was the very first company to produce a very successful coated air-bubble packaging protection product, AirCap. However, the market trend shows that uncoated bubble is becoming more popular. Emerging uncoated bubble demand, poses a direct threat to the long-term viability of technical advantages, the price of high quality AirCap. Therefore, Sealed Air Corporation is facing a key position. It specializes in the production of high-grade coated stress ratio of performance to price foam, or segments into a low-quality, cheap uncoated bubble to continue processing. In this case, the report will analyze how intense is the industry competition, and company internal environment evaluation aimed at the low-end market segments of the feasibility. Uncoated product will be considered as the next incoming marketing strategy. Ⅲ ANALYSIS A. Problem Identification Sealed Air is faced with the challenge of a newly introduced product in the market – uncoated cushioning. The problem in the case is
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 that it should create a sub-brand for the uncoated product to protect its parent brand image, and decrease the production of thin coated products, which can be substitute by the uncoated one.
Ⅱ INTRODUCTION A decade ago, Sealed air Corporation was the very first company to produce a very successful coated air-bubble packaging protection product, AirCap. However, the market trend shows that uncoated bubble is becoming more popular. Emerging uncoated bubble demand, poses a direct threat to the long-term viability of technical advantages, the price of high quality AirCap. Therefore, Sealed Air Corporation is facing a key position. It specializes in the production of high-grade coated stress ratio of performance to price foam, or segments into a low-quality, cheap uncoated bubble to continue processing. In this case, the report will analyze how intense is the industry competition, and company internal environment evaluation aimed at the low-end market segments of the feasibility. Uncoated product will be considered as the next incoming marketing strategy. Ⅲ ANALYSIS A. Problem Identification Sealed Air is faced with the challenge of a newly introduced product in the market – uncoated cushioning. The problem in the case is