Sealed Air Company Hbs Case Essay

6924 Words Nov 4th, 2012 28 Pages
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 material, introduced the first foam-in-place packaging system, and engineered the first complete solar heating system for swimming pools. We intend to follow the same management guidelines in the 1980s. We intend to seek market leadership
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The positioning, blocking, and bracing market was unique because of the heavier weights of items shipped. Flexible wrap and void fill were sometimes hard to separate because it was convenient to use the same product for both functions. The key distinction was that loose fills (for instance, polystyrene beads) dominated the void fill market but provided no cushioning protection and, hence, did not qualify as flexible wrap. Until 1970 most materials used for protective packaging were produced primarily for other purposes. Heavy, paper-based products had dominated the market. Sealed Air was one of the first

2 Astro’s barrier bubble and the AirCap bubble differed in both manufacturing process and coating material. Astro used nylon rather than saran. The basic idea of reinforcing the polyethylene bubbles to improve air retention was, however, the same.

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This document is authorized for use only by Md. Saquib Hussain in marketing final taught by Suresh Ramanathan from October 2012 to October 2012.

For the exclusive use of M. HUSSAIN
Sealed Air Corporation 582-103

companies to approach the market with a customer orientation, i.e., it began product development with an assessment of packagers’ needs. Since then a variety of products specifically designed for protective packaging had appeared. Sealed Air served these markets with two products: 1. Instapak® foam-in-place systems (1980 worldwide sales of $38.8 million) could accommodate any

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