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Sonoco SWOT and PESTLE Analysis

ID : 52859553| Feb 2023| 22 pages

COMPANY PROFILE -Sonoco

Business Sector :Manufacturing, Packaging

Operating Geography :United States, North America, Global

About Sonoco :

Sonoco Products Company is an international provider of diversified consumer packaging, industrial products, protective packaging, and packaging supply chain services and the producer of composite cans, tubes, and cores. It is headquartered in Hartsville, South Caroline, United States. In May, 1899 Southern Novelty Company was established in Hartsville, South Carolina, and in 1923, it was renamed as Sonoco. Sonoco’s operations include consumer packaging businesses, involving Global Rigid Paper and Closures, Global Flexibles, and Global Plastics; its Global Services division provides high-impact retail displays and packaging supply chain management; its Industrial Converted Products businesses, which produces tubes and cores and reels for the wire and cable industry, manufactures uncoated recycled paperboard globally for Sonoco’s fiber-based packaging divisions and external converters, and includes Sonoco Recycling, one of the world’s largest recyclers; and its Protective Packaging division, which produces highly engineered, custom-designed protective, temperature-assurance, and retail security packaging. On January 25, 2021 Sonoco announced that it is partnering with Integrated Systems, Inc., a vertically integrated robotics and advanced automation provider, to aid Sonoco’s businesses in continuing to advance in its utilisation of automation to improvise the efficiency of the Company’s global manufacturing operations. In 2020, Sonoco was named as one of America’s Most Responsible Companies by Newsweek and it also received an MSCI ESG “A” rating.
Sonoco’s Unique Selling Proposition or USP lies in being the world’s largest producer of composite cans, tubes, and cores and a leading manufacturer of blow-molded plastic containers. The company’s mission statement reads, "Sonoco’s strategic mission statement is to be the global leader in providing customer- preferred packaging solutions to selected value-added segments, where we expect to be either number one or two in market share".

Sonoco Revenue :


US$ 5,374,207 - FY ending 31st December 2019
US$ 5,390,938 - FY ending 31st December 2018

Competitive Analysis of Sonoco

SWOT
PESTLE

The SWOT analysis for Sonoco is presented below in a matrix followed by the detailed analysis report

StrengthsWeaknesses
1. Strong innovation capabilities in packaging
2. Superior temperature-controlled supply chain network blended with block chain technology
3. Strong financial position empowering the organization to invest in new projects
4. Reliable capabilities to provide efficient customized solutions to the end user
1. Experienced delays in the launch of new plastics business
2. Declining volumes leading to layoffs and shutting down of Elon manufacturing plant
OpportunitiesThreats
1. Boosting sales through online channels
2. Need for reliable packaging to preserve and transport the COVID vaccine
3. Rising demand in rigid plastic and flexible plastic applications
4. Strategic acquisitions to boost market expansion
1. Growing trade regulations across nations
2. Raw materials, energy and other price increases or shortages impacting the operational activities
3. Economic slowdown dampening demand
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Detailed SWOT Analysis of Sonoco

Strength

1. Strong innovation capabilities in packaging: Sonoco operates through 4 sections, i.e Consumer Packaging, Paper and Industrial converted products, Display and Packaging and Protective solutions. In 2019, Sonoco moved into the growing healthcare space through the successful acquisitions of Thermoformed Engineered quality, LLC and Plastique Holdings Ltd. This move positioned Sonoco in the space of higher growth, higher margin business and also equipped Sonoco with technical capabilities in packaging a wide range of sterile medical products and devices. Sonoco always drives its businesses by making sustainability as the core value of its business. Sonoco brought its products under the EnviroSense line of packaging which aligned with consumer needsto include features like recyclability, recycled content, reusability, compostability, packaging optimization, bio-based content and responsible fiber sourcing. This American packaging titan’s product innovation includes Natrellis, sugarcane fiber-based bowls for refrigerated and prepared foods.

2. Superior temperature-controlled supply chain network blended with block chain technology: Sonoco is the largest provider of temperature controlled and temperature assured packing materials in the global market. Sonoco has blended its supply chain with modern technologies to cater to customer needs efficiently. The company has incorporated the use of blockchain technology for its medical supply platform. Sonoco has joint hands with IBM to develop a portal named; PharmaPortalTM. This portal aims in bringing in transparency and increased traceability in the pharmaceutical supply chain. It will be able to record the entire journey of the package and track its movement. The company is working to develop this end to end platform to enhance the traceability of crucial and life-saving drugs and medical supplies. Sonoco has mentioned to work further with other leading experts of the industry to put together this project and make it successful.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • CHEP
  • UFP Technologies
  • PCA
  • CCL Industries
  • GREIF
  • Signode Industrial Group
  • Bemis Company
  • Caraustar Industries
  • RockTenn Company

Major Brands :

  • Natrellis
  • EnviroSensePaperBlister
  • EnviroFlex
  • EcoSeal
  • Thermosafe
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References used in Sonoco SWOT & PESTLE Analysis Report

1. Sonoco Annual Report 2019 - https://investor.sonoco.com/static-files/5aac7c2a-cbf9-40a9-bbdb-65d0424d60c3
2. Sonoco Q3 202 Investor Report -https://investor.sonoco.com/static-files/ceeb8089-8ae2-402f-b81e-cc1d79f54999
3. Company Website News Release - https://investor.sonoco.com/news-releases/news-release-details/sonoco-thermosafe-creating-industrywide-pharmaportaltm-platform
4. Company Website Home - https://www.sonoco.com/about/360deg-customized-solutions
5. E-Commerce Packaging Market - Growth, Trends, and Forecast (2020 - 2025) - https://www.globenewswire.com/news-release/2020/06/03/2043128/0/en/E-Commerce-Packaging-Market-Growth-Trends-and-Forecast-2020-2025.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Sonoco SWOT and PESTLE Analysis - SWOT & PESTLE.COM

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In-text: (SWOT & PESTLE.com, 2024)

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