Mondi plc SWOT and PESTLE Analysis

Strength

1. Unique packaging brand portfolio with broad range applications: Mondi has four business units running as separate entities – corrugated packaging, flexible packaging, engineered materials and uncoated fine paper. All these packages have brands of their own which are highly trustworthy to the company’s customers because they deliver their claims and are sustainable. For instance, BCoolBox is Mondi’s corrugated packaging solution which is 100% recyclable and can keep perishable food safely under 7⁰ C for 24 hours without a cooling truck. Similarly, its flexible packaging solution, StripPouch, is also 100% recyclable and uses 70% less plastic than its rigid counterparts. The trendy look of the packaging along with its sustainable properties make the company’s brand portfolio unique. In engineered materials one of its most popular products is the triple-layered wipes for personal hygiene which use biodegradable cellulose. Lastly, Color Copy is a popular brand in the uncoated fine paper segment. It is produced in a paper mill which is carbon neutral in its operations.

2. Leading market position in chosen markets: Mondi’s major markets or geographical revenue segments are South Africa, Austria, Germany, United Kingdom and Russia. Mondi’s operations are conducted through 100 production sites which are spread across 30 countries. The company sources its raw materials from a large base of 2,000 suppliers, and on the selling side it boasts of an equally large customer base. These assets have helped the company to achieve a leading position within the paper and packaging industry. The leading position in turn leads to further advantages like economies of scale, reliability and sense of trust among stakeholders, and extra resources to innovate new products and business models to service key accounts. The company keeps investing in its operations to optimize processes and cut costs to keep its position secure in the industry.

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Weakness

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Opportunity

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Threat

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Political

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Economic

1. Paper and pulp industry in decline due to increasing digitization: The paper industry, specifically the printing and writing paper segment, has been declining for some years owing to increased digitization globally. The lockdown restrictions and forced work from home due to the coronavirus pandemic has accelerated the decline of paper industry. One of the major rippling effects of this decline is mill closures. In the North American market alone covid induced mill closures brought down paper and pulp production by 2.5MM tons. As the pandemic is still not totally under control, uncertainty around the paper and pulp industry is increasing, making it difficult to determine if the mills will reopen. Mondi also had to shut down a few of its mills owing to lesser demand, which has led to layoffs of labors working in those mills and increased unemployment.

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Social

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Technological

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Legal

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Environmental

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