COMPANY PROFILE -DS Smith Plc
Business Sector :Paper Based Packaging Solutions
Operating Geography :England, Europe, Global
About DS Smith Plc :DS Smith plc is a British multinational packaging business. The company has its headquarters in London, England. In 1940, the business was set up by two cousins David Gabriel Smith and David Solomon Smith to build cartons. The business was listed on the London Stock Exchange later in 1950s. The company operates in packaging - corrugated packaging, plastic packaging and recycled paper in 37 countries. The company has around 27,500 employees as of early 2021. This multinational company also makes use of infrastructure of the countries in which they operate such as energy provider, telecommunication and transportation network. The company is funded by an amalgamation of shareholder equity, debt and cash flow generated through its operations. In 2020, the charitable foundation of the company made its mark on local communities by responding to Covid-19 through innovative packages for vulnerable citizens and donations around the world. The company has been awarded for three of it’s innovative packaging solutions prized with 2020 World Star Packaging Award, which are, The Tuorekartano Oy potato fridge-box, The Maggi ‘Food Travel’ display and The Red Bull Event car. The company believes in generating sustainable value which is found in balancing the needs of it’s business, environment and it’s people.
DS Smith plc’s Unique Selling Proposition or USP lies in it being the leading provider of packaging solutions, paper products and recycling services globally. The company aims to become a trusted partner to it’s customers by providing innovative packaging solutions for all their needs. D S Smith’s vision statement reads “Our vision is to be the leading supplier of sustainable packaging solutions.”
DS Smith Plc Revenue :
£ 6043 million - FY ending 30th April 2020 (y-o-y decline 2.0%)
£ 6171 million - FY ending 30th April 2019
Competitive Analysis of DS Smith Plc
|1. Employing innovation for introducing sustainable packaging solutions |
2. Europe’s largest paper and cardboard recycler
3. Increasing foothold by acquisition, consultancy and rightsizing
4. Scaling business with FMCG
5. Healthy balance sheet and robust financials over the past fiscals
|1. Lack of global presence
2. Accidents maligning brand equity and eroding profits
|1. Paper packaging presenting promising alternatives to plastic ones|
2. Growing e-commerce promotes paper packaging
3. Transformation of packaging and storage solutions in super markets
4. High demand of packaging material in pharmaceutical and healthcare sector
5. Rise of demand for anti-Covid solutions
|1. Light weight plastics still preferred over corrugated cardboards
2. Poor recycling leads more troubles than benefits of paper packaging
3. High competition in the segment
4. Tightened compliances
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Detailed SWOT Analysis of DS Smith Plc
1. Employing innovation for introducing sustainable packaging solutions: DS Smith utilizes inclusive innovation to produce best solutions of sustainable packaging. It has a team strength of 700 designers and innovators. The designers have 9 Impact Centres, where they innovate and share ideas with manufacturing units. There are 36 PackRight Centres innovate with customers to share ideas of innovative packaging with each other. DS Smith offers performance packaging for its customers. Customers demonstrate their products and product cycle and DS Smith develops packaging solutions as per the requirements. With this customized service, DS Smith aims to provide longevity of packaging as per requirement, reduce packaging weight and optimize the cost of packaging of the customers. Paper packaging has taken the shape of mass packaging with the advent of E-commerce. E-commerce channels demand robust packaging of different shapes and sizes. Focusing on Ecommerce packaging, DS Smith Developed the DISCS, expanding into tests named as Drop, Impact, Shock, Crush and Shake. DISCS replicate the real situation of E-Commerce parcels. DS collaborated with Amazon to innovate Amazons Frustration Free Packaging, which aims at ease of packaging, fright efficiency through packaging weight reduction and ease of handling. DS Smith also innovated and progresses with the “Wowing” unboxing experience packaging for its customers aiming innovation for best unboxing experience. Recently, the company innovated the ECO Bowl in collaboration, which uses 85% loess plastic for fresh food packaging. It is provided with a cardboard bowl for sturdiness.The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
WeaknessThis section is available only in the 'Complete Report' on purchase.
1. Paper packaging presenting promising alternatives to plastic ones: Growth of supermarkets and e-commerce has led to the growth of packaging industry as well. This has led to growth of plastic and paper packaging industries. With surging volume, concerns for sustainable solutions are also growing. Plastic is associated with pollution and limited cycles of re-usage. Governments are enforcing stringent regulations and environmental awareness among users is forcing business stakeholders to look for sustainable packaging solutions. This presents a massive opportunity for the paper packaging segment to play a pivotal role in capturing the market by providing eco-friendly sustainable solutions. In Europe, it is mandatory to recycle 100% of plastic by 2030. Presently, 86% of packaging and only 42% of plastic packages are recycled. This makes dependence on paper packaging easier and viable. The corrugated market is expected to generate $700 million every year on the back of drifting preferences away from plastic. This presents a huge opportunity to DS Smith to grow on the strength of its E-commerce focused innovations like DISCS, ECO Bowl, etc.The remaining section of “Opportunity” is available only in the 'Complete Report' on purchase.
ThreatsThis section is available only in the 'Complete Report' on purchase.
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DELIVERY AND FORMAT
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References used in DS Smith Plc Analysis Report
1. Recycling and waste management services - https://www.dssmith.com/products-services/recycling-services
2. Annual report & accounts 2019 - https://www.dssmith.com/contentassets/6f72f7975dde4ceaa364cdf00f3c427e/2019-annual-report_spreads.pdf
3. Liqui-Box divests products in DS Smith acquisition - https://www.plasticsnews.com/news/liqui-box-divests-products-ds-smith-acquisition
4. Sale of Plastics Division and Trading Update - https://www.dssmith.com/investors/investor-information/rns-statements/2019/3/sale-of-plastics-division-and-trading-update
5. Our new Now and Next Sustainability Strategy - https://www.dssmith.com/sustainability/sustainability-strategy
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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DS Smith Plc SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2021). DS Smith Plc SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/ds-smith/ [Accessed 21 Apr, 2021].
In-text: (SWOT & PESTLE.com, 2021)
Copyrights and Disclaimer
DS Smith SWOT and PESTLE analysis has been conducted by Tej Narayan Shaw and reviewed by senior analysts from Barakaat Consulting.