Case2: Leveraged Recapitalization Client: Sealed Air Corporation I.Executive Summary Founded in 1960‚ Sealed Air grew rapidly during its first twenty-five years because many products had strong patent protection. By the mid-1980s‚ the patent of air cellular had run out and competition was getting fiercer. The managers started to pay attention to manufacturing. Therefore‚ the Sealed Air launched World Class Manufacturing to promote manufacturing performance. After a year
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Sealed Air corporation’s (SAC) Freelance R&D practise was in line with the strategy of the company. Their primary goal was in innovation and diversification of their offerings. Hickey‚ CEO of SAC realised in his earlier days that SAC had promising opportunities outside the packaging market. And on top of it he realised that with the booming food industry there was a greater oppurtunity for SAC to come up with a product which will help the food processing industry in identifying and tracking
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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
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Executive Summary Sealed Air has been the market leader in the coated bubble product segment. It is considering introducing uncoated bubble product lines as it is gaining acceptance as a cheap alternative to the coated bubble product. Sealed Air may not be able to maintain and improve the current market share just by offering the uncoated bubble product. Instead‚ Sealed Air needs to introduce new uncoated bubble products at competitive prices to maintain yearly sales growth and market share.
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Sealed Air Case Comments Sealed air case is a comprehensive case that captures many issues that we have discussed in the marketing course. It is also one of the best selling marketing cases and I think for some very good reasons. Here are my comments on the case questions. Question 2: Sealed Air created value to its customers by building high performance (technical) product quality in its coated bubbles and by educating the customers about the benefits of coated bubbles through
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Case Writeups : Sealed Air Corporation 1) What has been happening in this market? How has Sealed Air (SA) been doing? To what do you attribute SA’s success? Sealed Air had achieved 25% annual growth in net sales and net earnings from 1971 to 1980. The company has been keeping a technical leadership position in the market. During 10 years‚ the company built on its development of the first-cell‚ lightweight cushioning material‚ introduced the first foam-in-place packaging system‚ and engineered the
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Igor Petrusca 1. Describe the corporate culture at Sealed Air. What is its business model? How do they make money? From the very beginning the Sealed Air corporation established itself as a company seeking market leadership and fostering technological leadership. It was a company of “firsts”. In essence‚ its philosophy was based on the belief that innovation is a customer-generated process and that it brings about market leadership which in turn means greater and sustainable profits. That is why
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Wm. Wrigley Jr. Company: A Recapitalization Strategy Development Team: Sam Posnick Emily Booth Alex Fabisiak Sam Zarat 1 2 Scenarios To create a successful recapitalization plan‚ the group analyzed multiple scenarios and determined the appropriate level of debt to issue for the William Wrigley Jr. Company (referred to as Wrigley). The chosen capital structure is based on efforts to minimize the Weighted Average Cost of Capital (WACC) while also reducing increases in the cost of equity
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Sealed Air Corporation has been the market leader in the protective packaging market for many years. Unanticipated competitors have entered the market offering uncoated bubble packaging which has gained significant market share from Sealed Air’s AirCap® coated bubble packaging material. To regain market share and expand Sealed Air’s business‚ a swift strategy of introducing uncoated bubble products needs to be implemented. By leveraging their large distribution network and existing manufacturing
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For the exclusive use of M. HUSSAIN Harvard Business School 9-582-103 Rev. September 24‚ 1985 Sealed Air Corporation The president and chief executive officer of Sealed Air Corporation‚ T. J. Dermot Dunphy‚ explained the firm’s 25% average annual growth in net sales and net earnings from 1971 to 1980: The company’s history has been characterized by technical accomplishment and market leadership. During the last 10 years we built on our development of the first closed-cell‚ lightweight cushioning
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