A Case Analysis on Sealed Air Corporation

The context in which the decision is to be made is that blotto publicise is facing argument from unexpected lodge. The order Sealed denude had achieved commercialise lead by differentiating its stressCap buffer materials by employ the barrier-coating making circulariseCap cushioning material much versatile and reli up to(p).The familiarity had depended on this big differentiating factor that had been communicated to its customers in different ways. In addition, its gross revenuepersons had similarly been trained to project the favourable position of cover blab cushioning. Sealed gentle wind technology is patented and so it enjoyed leaders in the cushioning trade. What is more than important is that the brand conveyCap was positioned as elevated quality, premium-cushioning material.Currently, in that respect is an affix in competition from both quarters. First, there atomic number 18 several(prenominal) wasted manufacturers that have invented processes similar to that of Sealed origin and have produced cheap substitutes. Second, there is an ontogenesis in uncoated house of cards cushioning manufacturing and marketplaceing in the USA curiously by a new rivalry that is GAFCEL.The issue to be decided is whether Sealed Air should commence manufacturing uncoated breathe operations to counter this new competition or should Sealed Air stretch with its strategy of emphasizing the benefits of coated emit technology. There atomic number 18 pressures from several quarters on Hauser to make the decision.The GAFCEL gross gross sales be increasing very quickly, the distributors of AirCap have also taken up the distribution of GAFCEL and the distributors are actively asking for uncoated sing cushioning. On the different hand Hauser is snap because Sealed Air has been positioned as a coated burp company, it has communicated the benefits of coated bubble technology over the years and its sales pinch is also oriented towards merc handising coated bubble cushioning.There are several requirements and limitations. The requirement for Sealed Air is to pedestal the falling market parcel out at home and abroad. For example, in England, Sealed Air of necessity to counter the challenges thrown to it by the Japanese firm that is selling uncoated bubble products at 50% little price than AirCap cushioning. Similarly, in France the market percent of AirCap has fallen from 50% to 30% because of change magnitude competition from uncoated products.Finally, In Germany, AirCap was losing its share at the rate of 20% to 30% per year. Even though the gross sales of AirCap in the US market are increasing, the rate of attach is much long-play than what it was in early 70s. For instance the increase in sales from 1973 to 1974 was 30%, the increase in sales from 1979 to 1980 was only 19% (Dolan p4). The basic requirement for Sealed Air is to counter the fast eroding market for its coated AirCap.It must be able to regain its market share to at least 1978 levels. Sealed Air has other requirements it must be able to comfort its current positioning in the market, it should be able to protect its coated bubble sales and must not trim down the brand equity of AirCap. Further, Sealed Air should endeavor to follow the twin objectives of providing market leadership through technological leadership.Till direct Sealed Air has technological leadership as well as market leadership because AirCap had been selling coated bubble cushioning. Sealed Air also needs to ensure that its distributors continue to sell its coated bubble products as they have do in the past. However, Hauser has some limitations. These are that the company does not have any office of differentiating if it goes in for uncoated bubble products. It has to argue on price with GAFCEL. There is no technological leadership for Sealed Air if it goes in for uncoated bubble technology.Moreover, the sales force of Sealed Air is oriented towards sell ing strongly differentiated high quality premium AirCap products. This sales force is not suitable for uncoated products.The sales of AirCap products are limited by the pick up for high quality versatile backpacking material. Similarly, the distributors and their selling methods are suited more for uncoated bubble cushioning earlier than AirCap products that needed more demonstration and selling time.