Sealed Air

Executive Summary Sealed Air must introduce uncoat bubbles for three reasons: (1) the market for uncoated bubbles is expanding while the market for coated bubbles is contracting, (2) price-sensitive customers needs must be met, and (3) Sealed Airs powerful distribution network and strong financials enable it to quick gain market share in the US uncoated bubbles market and fend off the recent competitive threat. grocery store Analysis Flexible wind ups is the key market, as in 1980 the US flexible wraps market was about eight times big than the void fill market ($126M versus $15.6M) and Sealed Airs existing products are better positioned in the flexible wrap segment than on the void fill segment. An uncoated aerate bubble product will also allow for elaboration in the void fill segment although this is not where the largest fortune lies. The US market for flexible wraps has experienced a striking growth between 1975 and 1980 (+77.5% - see endanger 1) mainly control by growth in the polyethylene Foam (x25) and Polyethylene conduct bubbles segments (+106.7% for both coated and uncoated segment). However, during this period AirCap gross revenue grew by only 97.7%.

This, along with the fact that foams are more cheaper than breed bubbles, indicates the market for flexible wraps growth has mainly been determined by low-cost packaging solutions. This impact is also reflected in the increasingly fast loss of market share AirCap is unworthy in the air bubbles segment (85.3% to 81.6% between 1975 and 1980 - See divulge 2). Unless Sealed Air introduces a line of uncoated air bubbles to take advantage of the shift toward lower-cost packaging solutions, they will delay giving away market share to competitors with cheaper products. Introducing an uncoated air bubble is supported by the analysis of AirCap sales by grade, combined with the Price to Distributor for each grade (see Exhibit 3). This analysis shows, between 1979 and 1980, substitution away from heavy-duty products... If you neediness to get a full essay, order it on our website: Orderessay

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