Sealed Air

On April 27, 1989 sure get off Corporation decided to go ahead with leveraged recapitalization by announcing a cash dividend of $40 /share. The smart set borrowed most of the funds to pay for this dividend which amounted to a total debt of $329.8 million. allows look at the circumstances which prompted Sealed Air to go for this move. Industry and Company Analysis: menace of current Entrants is medium in this assiduity segment. Because the patent on impart cellular has run out, the barrier to entry has decreased really. The tonic entrant still has to make significant investment on assets and setup an efficient manufacturing, R&D and supply string for their product. Threat of Rivalry is game. The industry has matured and has limited range of rapid growth. To gain market share new entrants whitethorn try to compete on price which would significantly commence down the value for the entire industry. Threat of Suppliers is not significant as the raw materials are easily available. Threat of counterchange is moderate to low. Though some of the forwarding materials have some substitutes, the growing consumer preference to buy fresh meat and fish can decrease the demand for padding products. Finally Threat of Buyers is quite high.

In this product category buyers dont really have brand loyalty and they may go for the cheapest product available in the market. By analyzing the five industry forces we can conclude Sealed Air has moderate to high business risk. Sealed Air was the pioneer in the packaging industry. It had a number of best selling product lines. It was potently protected by patents during 60s and 70s. The contract of the company during that period was to develop its sales force and distribution to sell its revolutionary products. It had high margin of 50%-60% on its products which made management ignore manufacturing efficiency. It managed to grow rapidly during the archetypal 25 yrs. Though enough data is lacking it seems Sealed Air during this period showed characteristics of a Z... If you want to get a full essay, order it on our website: Ordercustompaper.com

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