Sealed air coporation
Decision for sealed air corporation
Situation analysis
As a leading company in cushioning industry who had the advanced technology and possessed most market share in US and England, Sealed Air Corporation had been facing challenge of other competitors who nipping away their market share by supplying substitute products of uncoated bubbles with lower price. If there was no response offered by Sealed Air Corporation, they would lose 50% of its current market occupancy within three years according to the estimation given by distributors. So, it’s time for Sealed Air Corporation to decide that what was their next-step strategy corresponding to new competitors.
The facts that influences the decision making is list below,
1. Sales Champion: The market share of Air cap cushioning is 17.9% in US, 68.2% in UK, 1.3% in France, and 5.3% in Germany respectively. And in the US market, the sales increasement of Air Cap Cushioning is 14.4%, 19.8%, 16.8% in 1978, 1979, 1980 respectively. [Results are calculated by the data in page 4 ]
2. Price-Oriented Market: Most of the customer decide their product only by price, only few of them will consider the price/performance ratio, which renders the buying force of end customer is unpredictable since there is no standardize science procedure in the purchase which lead to fast change behavior of market demand and massive competition.
3. Unprecedented Challenge of Uncoated Bubbles Operation: The challenge of uncoated bubbles operation is unprecedented that 1 full-time and 1 half-time salespeople contributed 1million annual sales rate compares to the total sale of sales champion is only 25.8milion. What’s more, some of Sealed Air Corporation distributor had taken on GAFCEL line.
4. Lacking of sales force: 62-person sales team with 35% of their time devoted to the selling of Air-Cap cushioning, which is not enough based on the demand of distributor.
5. Technology Leadership (Barrier): The unsurpassed technology given by Air-cap
Situation analysis
As a leading company in cushioning industry who had the advanced technology and possessed most market share in US and England, Sealed Air Corporation had been facing challenge of other competitors who nipping away their market share by supplying substitute products of uncoated bubbles with lower price. If there was no response offered by Sealed Air Corporation, they would lose 50% of its current market occupancy within three years according to the estimation given by distributors. So, it’s time for Sealed Air Corporation to decide that what was their next-step strategy corresponding to new competitors.
The facts that influences the decision making is list below,
1. Sales Champion: The market share of Air cap cushioning is 17.9% in US, 68.2% in UK, 1.3% in France, and 5.3% in Germany respectively. And in the US market, the sales increasement of Air Cap Cushioning is 14.4%, 19.8%, 16.8% in 1978, 1979, 1980 respectively. [Results are calculated by the data in page 4 ]
2. Price-Oriented Market: Most of the customer decide their product only by price, only few of them will consider the price/performance ratio, which renders the buying force of end customer is unpredictable since there is no standardize science procedure in the purchase which lead to fast change behavior of market demand and massive competition.
3. Unprecedented Challenge of Uncoated Bubbles Operation: The challenge of uncoated bubbles operation is unprecedented that 1 full-time and 1 half-time salespeople contributed 1million annual sales rate compares to the total sale of sales champion is only 25.8milion. What’s more, some of Sealed Air Corporation distributor had taken on GAFCEL line.
4. Lacking of sales force: 62-person sales team with 35% of their time devoted to the selling of Air-Cap cushioning, which is not enough based on the demand of distributor.
5. Technology Leadership (Barrier): The unsurpassed technology given by Air-cap