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
The SWOT analysis for Sonoco is presented below in a matrix followed by the detailed analysis report
Strengths | Weaknesses |
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
|
Opportunities | Threats |
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.
The PESTLE analysis for Sonoco is presented below in a table followed by the detailed analysis report
Political | Economical |
1. Changing government regulations, taxes and tariffs
2. Easing of tariffs on pulp made from recycled fibre made shipments to China viable
| 1. COVID-19 impact on the packaging industry
2. Brexit impact on the packaging industry |
Social | Technological |
1. Shift in consumer preferences to sustainable packaging products | 1. Technological advancements in food grade plastic is shaping the packaging industry
2. Enhancing value chain with technologies like Blockchain in partnership with IBM
|
Legal | Environmental |
1. Product liability claims and other legal proceedings could adversely affect operations and financial performance | 2. Waste management in consumer goods industry has become an important concern in the packaging industry
3. Changing attitudes towards ecological and green products
|
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Detailed Pestle Analysis of Sonoco
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
1. Shift in consumer preferences to sustainable packaging products: The society is moving towards sustainable growth in all realms of living. There is growing awareness regarding adopting solutions to minimize wastage and improve sustainability. In the wake of global warming issues, governments, local and international, have issued various norms and guidelines for environmental sustainability. Packaging industry has a great sizeable share in waste generation from its packing products; especially the single use plastics. In fact, pressure has been piling on the packaging industry to innovate and introduce products which are sustainable. Currently, large amounts of packing materials are not reusable or recyclable. With rising environmental concerns, the packaging industry is steadily moving towards sustainable and recyclable products. Sonoco has realized this factor and is constantly chasing alternatives for polluting packaging materials. They have launched the EnviroSenseTM portfolio of sustainable packaging solutions that will help customers further reduce the environmental impact of packaging and are still going for more innovation and invention in the field.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
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
On purchase the Sonoco SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Sonoco Porter's Five Forces Analysis |
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Sonoco Segmentation, Targeting and Positioning (STP) Analysis |
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Sonoco Ansoff Matrix Analysis |
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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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