COMPANY PROFILE -Stora Enso
Business Sector :Paper and Packaging
Operating Geography :Finland, Europe, Global
About Stora Enso :
Stora Enso, a Finnish and Swedish paper and packaging powerhouse, traces its roots to the 1998 merger of Stora AB and Enso Oyj. Headquartered in Helsinki, Finland, the company dominates the European market, while exporting products globally to Asia, South America, and the US. As a government-owned entity, Stora Enso holds the unique distinction of being the world's oldest limited liability company, boasting the oldest-known preserved share certificate from 1288. The introduction of the Forest division in 2020 marked a pivotal moment in its trajectory. With a diverse product range including consumer board, renewable packaging solutions, biomaterials, wood products, and paper, Stora Enso caters to a broad clientele ranging from publishing and printing to retailers, brand owners, print and board producers, merchants, converters, joiners, and construction companies. As of 2023, the company stands as a global industry leader with a workforce exceeding 21,500 employees.
Stora Enso's mission revolves around pioneering the replacement of fossil-based materials through innovation and the development of novel products and services rooted in wood and other renewable materials. The company envisions itself as a leader in its field, a preferred partner, and a respected member in the societies it operates in, committed to delivering value to customers, employees, investors, suppliers, and other stakeholders. The unique selling proposition (USP) of Stora Enso lies in its position as a top provider of renewable packaging solutions. Offering environmentally friendly alternatives to non-renewable products, the company's offerings boast a significantly smaller carbon footprint.
Stora Enso Revenue :
€11.68 billion – FY ended 31st December 2022 (Y-O-Y Growth 14.96%)
€10.16 billion – FY ended 31st December 2021
Competitive Analysis of Stora Enso
The SWOT analysis for Stora Enso is presented below in a table followed by the detailed analysis report.
Strengths | Weaknesses |
1. A broad and diversified portfolio of products
2. Numerous awards enhance the brand's strength globally
3. A leader in sustainability with a naturally green business, driving opportunities
4. A global leader with a diversified business model underpinned by megatrends
5. Competitive edge through distinctive, impactful products | 1. Sales decline impacts financial performance
2. Exiting from the Russian market led to a decrease in profitability
3. Shutdown of production unit due to decrease in demand for paper |
Opportunities | Threats |
1. Growing global sustainability focus
2. Focusing on the CO2 challenge
3. Replacing non-renewable materials with renewable products | 1. Declining demand in packaging, especially containerboard, threatens Stora Enso's revenue |
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Detailed SWOT Analysis of Stora Enso
Strength
1. A broad and diversified portfolio of products: Stora Enso Oyj is a Finnish manufacturer of forestry, paper, and pulp. It has a diversified and broad portfolio of products. The packaging materials producer has different product segments which mainly manufactures packaging solution, paperboard material, paper, wood products, lignin, pellets, intelligent packaging, bio-composites, and bio-based products. There are various kinds of products that it manufactures in every segment. In paperboard material segment, it produces domestic paperboard materials, liquid packaging, food service packaging, cigarette packaging, folding cartons, and container boards. Similarly, each segment has various products under it. This is one of the biggest reasons for Stora Enso to lead this industry and have a strong hold on the global markets.
2. Numerous awards enhance the brand's strength globally: Stora Enso's global prominence in sustainable business practices has been significantly bolstered by a slew of prestigious international awards and recognitions. Notably, the Transition Pathway Initiative (TPI) lauded the company's top-tier performance in greenhouse gas management, showcasing its preparedness for the transition to a low-carbon economy. EcoVadis, an ethical supplier rating system, placed Stora Enso in the top 1% of suppliers, attaining Platinum recognition for its commitment to ethical business standards. The company's consistent recognition as a Supplier Engagement Leader on climate change by CDP reflects its effective engagement with suppliers in addressing climate challenges. Stora Enso's dedication to biodiversity reporting earned it a top-three position in the Ecogain Biodiversity Index for 2022 among Europe's largest companies. Furthermore, the World Business Council for Sustainable Development (WBCSD) acknowledged the global impact of Stora Enso's Sustainability Report 2022, placing it in the top ten globally. In Finland, the company's Sustainability Report 2021 was crowned the best, emphasizing its excellence in sustainability reporting within the national landscape. These accolades collectively underscore Stora Enso's unwavering commitment to sustainability and contribute significantly to enhancing its global brand reputation.
The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threats
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The PESTLE / PESTEL analysis for Stora Enso is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Russia- Ukraine war led to the exit of the company from Russia
2. France's RE2020 environmental regulations boost wood demand, creating a market advantage for Stora Enso | 1. Economic downturn or uncertainties impacting the company's revenue |
Social | Technological |
1. Consumers are moving away from virgin paper or pulp products to recycled products
2. Stora Enso's outreach program for schools and parents promotes diversity from a grassroots level | 1. Investing in advanced Fiber Molding tech for sustainable packaging solutions
2. Integrating sustainable RFID tags in New Retail for transparent supply chain control |
Legal | Environmental |
1. Stora Enso's involvement in the antitrust investigation indicates legal challenges
2. Included competition law in business practice policy | 1. Stora's investment boosts CarbonScape, targeting carbon footprint reduction in manufacturing
2. Collaboration with Kolon significantly reduces carbon footprints and promotes renewable materials
3. Stora Enso's biodiversity conservation efforts enhance climate change resilience amidst the increasing impact of climate change |
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Detailed Pestle Analysis of Stora Enso
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. Consumers are moving away from virgin paper or pulp products to recycled products: The trend of consumers shifting away from virgin paper or pulp products to recycled products reflects a growing awareness and preference for sustainable and environmentally friendly options. This shift is influenced by increased concerns about deforestation, climate change, and the environmental impact of traditional paper production. Recycled paper and pulp products offer several environmental benefits. By using recycled materials, the demand for new raw materials, such as fresh wood fibers, is reduced. This helps in preserving forests and biodiversity. Additionally, the recycling process often requires less energy and produces fewer greenhouse gas emissions compared to the production of virgin paper. Companies and industries responding to this trend may adapt their practices to incorporate more recycled content into their paper and pulp products. This shift aligns with broader sustainability initiatives and the circular economy, where materials are reused, recycled, and repurposed to minimize waste and environmental impact.
The remaining section of “Social” is available only in the 'Complete Report' on purchase.
Technological
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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 :
- Holmen
- International Paper
- Smurfit Kappa Group<
- Billerudkorsnas
- Metsa Board
- Georgia-Pacific
- Mondi
- DS Smith
- Ahlstrom-Munksjo
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Stora Enso SWOT & PESTLE Analysis Report
1. Stora Enso | Home - https://www.storaenso.com/en
2. Stora Enso | Media - https://www.storaenso.com/-/media/documents/download-center/documents/investor-relations/2020/stora-enso-esg-investor-presentation_q22020.pdf
3. Stora Enso | Investors - https://www.storaenso.com/en/investors/stora-enso-as-an-investment
4. Stora Enso | Newsroom - https://www.storaenso.com/en/newsroom/regulatory-and-investor-releases/2023/4/stora-enso-oyj-interim-report-january-march-2023-due-to-the-worsened-market-outlook-actions-are-taken-to-protect-margins-and-manage-costs#:~:text=The%20market%20outlook%20is%20worsening,short%2Dterm%20visibility%20this%20year
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Stora Enso SWOT and PESTLE analysis has been conducted by Akshay Mohan and reviewed by senior analysts from Barakaat Consulting.
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