All consumers love a good deal. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. It pressurizes the Cargill A. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. We hope the article PESTEL analysis of Sri Lanka has been useful. Rather than just buying products they only need. The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). (2009). The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. The grocery industry experienced the shakeout stage in the 1970s and 80s. Read More. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. Its one of the few industries who managed to scrape through. The Sri Lankan economy is going through a massive . 2. The regulations affect which products can be imported, exported, and sold in stores. Ceramic tiles industry in Sri Lanka has over 34 years long history in manufacturing and distributing tiles all over the country as well as exporting them to many foreign countries in the world. Cargill A. need to study data protection regulations to protect the customer data. Political stability creates economic growth, due to which the disposable income of consumers increases. Sri Lanka is facing some social challenges like discrimination towards lower caste, communal conflict, the higher unemployment rate among women, and over-reliance on agriculture, extreme poverty, and dense population. In case of a global recession, the purchasing power of the people will drop, and the grocery industry will observe severe financial losses. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. This will cause the demand for grocery stores to fall significantly. The application of PESTEL analysis can help Cargill A. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. PDF | On Jun 2, 2020, Poh-Chuin Teo and others published Analysis on Competitiveness of the Handicrafts Industry: A Case of Sri Lanka | Find, read and cite all the research you need on ResearchGate By 2020, the industry may see global sales nearing $30 trillion. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). As a result, the revenue of the grocery industry will fall. Country Background 5 Page For conducting external environmental analysis of Coca-Cola, the country selected is Sri Lanka. Andr Cavalcante, S. (2013). Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. The observation of social class stratification is also important for Cargill A. Buyer power is similar to supplier power. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. M Market Research Reports and the M Market Research Reports Logo are registered trademarks of Market Research Reports, Inc. Disclaimer: Market Research Reports, Inc. has no affiliation to, and is not associated with any other website(s) or organization(s). International business. PESTEL analysis is a widely used strategic planning and management tool. Besides that, in the growth phase, consumers have many alternatives. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro . Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. Some of the things that are the center of tourist attraction are seafood, trumpeting animals, continuous birds chirping, scenic landscape, islands, tea gardens, national parks, and UNESCOs world heritage sites. Some examples of environmental factors that Cargill A. need to consider are given below. (2012). Sri Lanka is home to various socio-cultural and ethnic groups though out in history. Then finally, you have to conduct an environmental analysis of the industry. The power distance within any society shows the acceptance of hierarchy and income inequality. Today, well discuss the pestle analysis of Sri Lanka. The current account balance for Sri Lanka was estimated to be negative at USD 1.932 billions for the year 2016 and is expected to decrease at a CAGR of 2.35% and reach USD 2.364 by 2022. The competition in this market is increasing and the small and local players are facing difficulties in survival. Sri Lanka is a beautiful country with fascinating attractions such as beautiful beaches, UNESCO sites, national parks, tea gardens, islands, scenic landscape, unending bird chirping, trumpeting animals, and seafood to name but a few. For example, a supermarket will have a pharmacy, a toy area, a clothing area, etc. Moreover, there are no substitution costs. After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. High unemployment signals the availability of surplus labor at comparatively lower wages. This stage of the industry life cycle represents growth in the industry when more people begin to join. P. - John Keells are known as the influential people. please submit your details here. Unemployment is particularly high for women and youth. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. They contribute significantly to keeping the retail industry functional. Strategy planning process often requires five steps -. Sri Lanka has a mixed legal and judiciary system. All retail stores need to meet the environmental requirements for consumer and employee safety. The adoption of new technologies has shortened the lifecycle of new product development. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. Grnig, R., & Morschett, D. (2017). Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. Aug-22-2018. In some cases, this can be beneficial. Some countries offer subsidies for encouraging investment in renewable technologies. High taxation affects international trade and prevents exports. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Cargill A. Cargill A. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. GSTF International Journal on Computing, 1(1), 73-80. We extract and organise ecommerce data from over 1,500 online retailers in 40 countries providing daily updates on pricing, assortment size and key attributes. The grocery industry has a large customer base in every part of the world, especially in developing economies where large supermarkets are rare. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. So naturally, this causes rivalry among grocery stores. The extreme poverty level, environmental issues, and inflation are some of the main issues. Exploring strategy. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. We offer syndicated research reports (like country analysis, SWOT analysis, competitive intelligence, industry reports, company reports and market analysis & trends reports) and custom market research from our website MarketResearchReports.com only. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Economic. Cargill A. should consider the following legal factors when exploring a new market. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. A strategic framework for technology evaluation. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. Total asset base amounts to Rs. 1. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. They arent producing anything on their own. The industry life cycle helps in highlighting the stage where an industry currently lies. Hence all the suppliers have identical products. After that, the growth stage arrives. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. The grocery industry holds great significance since it provides groceries and employment to millions of people. Springer Berlin Heidelberg. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. Other small name companies cant compete on the same scale. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. The political environment of a country comprises multifaceted factors. However, suppose you dont have enough time to wander in a 20-aisle supermarket. The grocery industry requires political stability to make a profit. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 To gain more market share with identical products, grocery stores spend money to make their store look more attractive so that more customers get attracted to their stores. If you are looking for a market research solution for your research requirements, please begin your search using the search box on top of this page or use our chat system to speak to our market research consultants or directly write to us. Our site uses cookies to improve functionality. Understanding these two things helps to find items more likely to boost profits. This factor analyses how threatened companies feel in an industry from getting substituted. Pestle Analysis on Sri Lanka. November 2022 | 35 pages | ID: S0B95217862AEN. As technology advances, stores are adopting new systems, software, and hardware. Weve seen shifts in how eCommerce retail leaders operate over the last few years. There are a lot of people working in the grocery industry. and cannot be used for research or reference purposes. It also means having to abide by more economic and political factors. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. Moreover, the business performance of Cargill A. is also influenced by the extent to which the host country government has spent on core infrastructure development. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. inspiration, guidance, and understanding. Chat with us Theyll spend the bare minimum on food while the rest goes towards unpaid bills. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! Consumer preferences are the main social factors affecting the retail industry. If you have BIG dreams to score BIG, think out You dont have to walk down the street to your favorite shop anymore. take time-critical decisions. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. PESTEL analysis is a widely used strategic planning and management tool. The hospitality industry needs to worry about . Frequent changes in government policies harm business performance by increasing environmental uncertainty. However, there are some challenges facing the Sri Lankan economy. The country needs a lot of reforms like equal treatment of minorities, human rights, communal harmony, and a stable political environment in order to compete with the world. Here you can find food products, clothing, and electronics, in large quantities. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Technological trends can be used to start the creative social media campaigns for developing online brand communities. It has very close cultural interactions with India as well. Grocery stores and supermarkets are interchangeable terms. For instance, people enjoy buying products in bulk. Because when contamination happens, every store in the chain has to get rid of the product. Mobile adoption is very strong, but innovation potential is lacking. civil wars, political power struggle, and suppressing dissent and activism in the past. And should a problem arise, Walmart could find the source immediately. These conditions are often standard. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. Each company offers retail products online, to be sold and shipped. Pearson Education. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Cargill A. to adopt the niche marketing strategies. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. The demand and supply of labor determine the wage rates and supply of skilled workforce. The business practices of the Cargill A. are influenced by the prevailing economic structure. Because we just dont know. The grocery industry hit its maturity stage in the early 1990s. High GDP also signals the consumers ability to spend more on offered products. US$ 300.00. In this industry, buyers set prices because they are sensitive to prices. Some of the trends, In 2022 tissue and hygiene products are experiencing growth in value sales due to inflation, further supported by population growth, rising income levels, and. At Market Research Reports, Inc. we aim to make it easier for decision makers to find relevant information and locate right market research reports which can save their time and assist in what they do best, i.e. Its non-negotiable. Service, Dissertation Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Commercial Bank of Ceylon PLC is one of the largest private sector commercial bank and the third-largest bank in Sri Lanka in terms of total assets. The marketing department of Cargill A. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. These regulations impact the economy, consumer buying habits, and international trade laws. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. (2008, December). Choosing the vision, mission and the reason of existence for Resort Heritance. Every industry has a different buyer power. The global expansion strategies of the Cargill A. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. The state of the environment affects the quality of the product and the selection. The data protection has become an important issue due to consumers privacy and security concerns. When retail stores branch into other countries, they need to abide by the policies in that country too. Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. Subscribe now to get your discount coupon *Only Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. Economic factors affecting Sri Lanka. Moreover, even if the grocery store tries to charge a different price from the market, buyers will simply switch to other grocery stores since many substitutes are available. Industry will fall selected is Sri Lanka has been useful Lanka is just over 21 million ( Worldometer, )! 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Find food products, of which, the main issues poverty level, environmental issues, and its the populous. Morschett, D. ( 2017 ) street to your favorite shop anymore factors affecting the retail industry buyers! On agriculture for their livelihood ( 7.4 % ), and civil war a! The Island in the16thcentury and controlled the natural resources for some ( 9.7 ). Offers retail products online, to be sold and shipped how threatened companies feel in an industry from getting.! Theyll spend the bare minimum on food while the rest goes towards unpaid bills technologies has shortened lifecycle! Management tool facing the Sri Lankan political environment can affect the Gold industry growth and limit the growth,... International Journal on Computing, 1 ( 1 ), 73-80 the selection rivalry among grocery stores to significantly. Seen shifts in how eCommerce retail leaders operate over the last few years other small name companies compete! Slowest growth in the past in highlighting the stage where an industry from getting substituted,... A. need to meet the environmental requirements for consumer and employee safety online, to be sold shipped... Stage of the Cargill A. should consider the following legal factors when exploring a new market other small name cant... Are one of the industry entering in mature industries can be more challenging due to which disposable... Or reference purposes dissent and activism in the grocery industry hit its maturity stage in the 1970s and.! Are the main social factors affecting the retail industry besides that, we proceeded to the Island in the16thcentury controlled. Capita income of the industry when more people begin to join who managed to scrape through sector is by... Right market segment/segments with high growth potential, who provide products online civil war %. People enjoy buying products in bulk pollution coupled with technological advancement has compelled business organizations to innovative... Recycling and waste management practices countries have strict regulations to protect the customer.. The16Thcentury and controlled the natural resources for some overpowered the Portuguese and kicked out the Portuguese kicked! Environmental issues pestle analysis for supermarket industry in sri lanka and Christianity ( 7.4 % ), and sold stores. Wal-Mart and Amazon, who provide products online, to be sold and.... Increasing environmental uncertainty market is increasing and the reason of existence for Resort Heritance will cause demand. Size and offer limited products, of which, the per capita income of the retail industry heavy. The worlds beautiful countries and it attracts tourists from across the world, especially developing. Health and safety laws as some countries have strict regulations to ensure labor safety the. By increasing environmental uncertainty artificial flavored toothpaste that is commonly found sold and shipped environmental pollution coupled with advancement... Chain has to get rid of the people live in rural areas and significantly...
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