Sealed Air Case Essay

In this case study, we review Sabor’s current position with regards to its supply source of Macronil, the main component for its air filtration units. We evaluate this using the Karljic matrix and his 4-phase methodology (Kraljic, 1983) as our theoretical framework and analyze the options available to Sabor Inc. using the case information and data provided. We then conclude with our goal of offering viable recommendations to Sabor, given the constraints, to better Sabor’s purchasing position in this situation.

Sealed Air has the technology to launch uncoated products which will maintain its leadership in the US market and reverse the decreasing tendency in the European market.

Nova Chemicals operates in both the basic and specialty chemicals segments. The IPD division that produced basic chemicals is under review for sale to United Chemicals due to its apparent poor performance. On further review it appears that the offer of $160 million is much lower than the actual value once the R&D expense is reallocated. At the same time since the IPD division does not share synergies with the other divisions it is recommended to either spin off the division or institute a tracking stock to make its actual value transparent to the market and thereby prepare it for a future sale. In order to raise the capital for a capacity expansion for the high growth Environmental Products division we recommend

One reason for their success is because of the commitment of the mission statement that is that the company is dedicated to the highest quality of customer service delivered with a sense of warmth, friendless, sense of individual pride and company spirit. Their low, discount air fares and bags fly, free the point to point services, and the strong fleet base which

Market leadership and technological innovation have marked Sealed Air's participation in the U.S. protective packaging market. Several small regional producers have introduced products, which are less effective than Sealed Air's but similar in appearance and cheaper. The company must determine its response to this new competition. The company is faced with a difficult choice of choosing from a range of feasible options ranging from doing nothing to introducing a new product. This has raised product line management issues, particularly cannibalization, and affords the opportunity for the development of a marketing plan for any new product introduction. The timing of launch and any change in policies for Air Cap

Sealed air was the packaging market leader in the US while its history has been characterized by technical accomplishment. It also expanded its packaging market through abroad. The firm met its customers’ need while differentiating its products from contenders by barrier-coating. They had two types of products: the first was Instapak foam usually used for heavy items while the second was AirCap bubbles primarily served the flexible wrap and void fill markets. The company was serving the higher quality and more enduring items with a higher price other than its competitors. Sealed air was both manufacturing

(PFMA) Increased competition has lead to greater effort for developing new products in order to meet customers demand. Therefore a lot of money has been put into Research and Development strategies, stimulating technical progress in this industry. (Mars, 2003)

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.

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.

I personally believe that Airborne‘s business strategy is play a vital role for emerging industry. It would take a very large

Changes witnessed over the last few years on mode of packaging and its economic impact.

A special dividend was paid to the shareholders of the company when Sealed Air Corporation borrowed the total common stock for a value of 90% of its market value. This was a program which was basically initiated by the management of the company for improving the product quality and improving the efficiency of the manufacturing processes of the company. The leveraged recapitalization was used as a watershed event and this was done successfully and purposefully by the management of the company.

Sealed Air was faced with two different options regarding the prospective launch of an uncoated bubble packaging product. Sealed Air could either launch the product worldwide or in selected locations or consider the option of not entering the uncoated bubble packaging market at all.

Body Glove’s reputation was at stake and in 1990 the company decided to break away from employing

In the industrial segment, paper competes with substitutes such as polymers, wood and steel for use in packaging applications. Given their lower prices and the increasing focus on appearance, polymers pose a threat to paper in industrial applications.