This trend is not favorable to a company just like Sealed Air Corporation, which has based its strategy over a production of a extremely effective, if some high priced product.
The Sealed Air Corporation has an opportunity to enter the uncoated segment in the air bubble protective packaging material market. The obverse side of this coin of opportunity may be the threat to business sales from competing uncoated products. The business need to also assess the damage to its reputation, as well as on the sales of its coated air bubble product, that could ensue in the production and advertising by the business of an uncoated product.
II. Analysis of Internal Situation.
The company's sales and profitability performance was outstanding from 1976 to 1980 the period promptly preceding the time frame in the case. Similarly, the operating performance on the company's merchandise has been outstanding.
The Sealed Air Business markets its solutions on a basis of operating performance, instead of price. As a consequence, its products and solutions are priced at a premium in relation to most competing products.
The company's competitive advantage is in accordance with the technological superiority of its products. The company's popularity for quality also makes a competitive advantage.
The very first selection strategy open for the business is to decline to introduce an unsealed air bubble protective packaging product. This strategic technique would maintain the company's status like a producer of only the highest top quality protective packaging products. With this strategy, however, the company could also expect to lose an increasing volume of sales towards the producers of unsealed air bubble packaging materials.
mpany strength is its acceptance by the protective packaging material user as being a quality producer of such materials. The major weakness in the company, as in the time frame of the case, has been its reluctance to recognize the genuine nature from the threat posed by the producers of uncoated air bubble packaging materials.
Alternative II is advised for adoption by the company. This option would greatest maintain the company's market share and its profitability in a changing marketplace environment. The company's target market would be expanded to accommodate the capability users in the new product, and both pricing and advertising and marketing for the new product or service would be different from that to your company premium coated product. There would be no need to alter the company's distribution structure.
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