Harvard Case Study - Sealed Air Corporation Essay

1674 Words Mar 13th, 2007 7 Pages
1.0 INTRODUCTION 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. Thus Sealed Air is situated at a critical standpoint. It can either continue to deal exclusively in the manufacture of high-end coated bubbles emphasizing performance over price, or segment the market by introducing an …show more content…
With comparable production costs and margins to GAFCEL, Sealed Air possess no unique manufacturing or cost advantages that underlie competitive advantage. A key concern involves negative affect or cannibalization of AirCap sales. Distributors who have already complained about below-par selling efforts of AirCap and too many grades of bubble may be unreceptive to taking yet another product to market. Given the company's selective distribution network, it is important that distributors remain committed to Sealed Air. At the customer level, the manufacture of inexpensive, low-performance bubble may debase the premium image of the company and AirCap. However, market shifts and the growth of the uncoated segment cannot be ignored. Sealed Air must enter this market to sustain long-term leadership of flexible wrap. The following marketing plan will address the above issues to ensure success.
4.0 STRATEGY Sealed Air's objective remains to challenge for market leadership as a follower in a growing market. Sealed Air may pursue five strategic avenues: frontal attack, leapfrog strategy, flanker strategy, encirclement strategy, or guerrilla attack. A large-scale frontal attack presents the most harmonious fit with the company's objectives and best leverages its superior distribution, sales, and financial

Related Documents