on WhatsApp for any queries. please submit your details here. 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. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. There is a variety of Herbal Toothpaste that rich in calcium and minerals. Then, an industry goes through the shakeout stage. The sales of grocery stores depend upon inflation directly. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. 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. Its fast and easy to use. Rather than spending weeks trying to locate where the contamination started. Ignorance in this regard can cause undesired circumstances for Cargill A., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. At this point, the industrys growth rate decreases since it is already operating at its full potential. The maturity stage leads to the decline stage. Cargill A. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Cargill A. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. When its on the decline, the opposite is true. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. 2023 Euromonitor is privately owned & trademarked. (2009). The current population of Sri Lanka is just over 21 million (Worldometer, 2021). Some countries offer subsidies for encouraging investment in renewable technologies. After the growth stage, an industry undergoes the shakeout stage. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . Environmental factors affecting Sri Lanka. Economic factors: Nearly $30 trillion dollars in a couple more years. Currently, Cargill A. is present in different countries, each having own political tensions. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). European Journal of Innovation Management, 16(3), 285-300. To conduct an industry analysis, first, you must conduct an industry life cycle. However, there are some social issues challenging Sri Lanka today. Its always there, even when buyers dont have the funds to buy their products. Because no one can afford or justify the purchases. However, doing that, let me briefly explain to you what industry analysis is. correct email will be accepted, (Approximately 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. Companies set targeted ads to customers most likely to visit their stores and buy from them. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. 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. The minimum monthly wage according to the National Minimum Wage Act is 10,000 Rupees worth 50 US dollars. After that, the growth stage arrives. The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. Back then, the guy who used to deal in dry goods such as spices was called a grocer. The supplier power in the grocery industry is very low. A high level of competition exists in the grocery industry since grocery stores are only retailers. In this way, grocery stores are essential for the economy. They all promote the countrystourism industry. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. The only thing left for the company to do about these changes is abide by them. Check your email Cargill A. must adjust its business management practices while entering in markets with high or low power distance. As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. 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. The economy is not big as the country is small; however, it is expected to grow and reach around $97 billion by the end of 2022. In fact, Sri Lanka has received the highest investment from China. 1189 Words; 5 Pages; Jun 15th, 2018 Published . However, Condliffe (2019) reports that social media particularly Facebook, have been used to spread false information to bring about social disturbance and disharmony in the country. 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. 2. Similarly, it is important to understand the industry lifecycle stage. 8.4 Bn. 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. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. International business. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. In this PESTLE analysis, we'll look at the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the food industry; in particular, we'll look at how both restaurateurs and food distributors might be affected by current trends. to get Coupon Code. All rights reserved LCHW. You dont have to walk down the street to your favorite shop anymore. Blackridge Research's Sri Lanka Solar Power Market Outlook report consolidate the developments and build a perspective on growth from the point of view of the solar sector, in its current and future role. Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. Its important to understand the laws long before the store is open for business. Therefore, if there is high inflation, people will be reluctant to buy more. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. The revenue and profitability of any retail store are affected by government policies. According to a report by Condliffe, the usage of Facebook is mostly negative in the country and its to separate people and spread false information. Likewise, the literacy rate (over 92%) is very high as well. Focused R&D and innovation at Blue Star driving growth: Blue Star Limited strengthens its R&D ecosystem, enabling it to release new, innovative goods and services to meet various client needs, giving Blue Star a significant advantage. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. Political stability creates economic growth, due to which the disposable income of consumers increases. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. Legal factors become trickier once the company expands overseas or offers products online. Yksel, I. Hence, the grocery industry suffered. Likewise, some shops in other countries have to pay a tax for offering fatty foods. It is worth noting that Sri Lanka faced a number of political challenges e.g. This PESTEL/PESTLE analysis reflects a number of opportunities and threats that Unilever must prioritize in its strategies for growth and global expansion in the consumer goods market. Stores other than CostCo now mass stock various products to avoid running out quickly. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. The stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. The advent of social media and e-commerce has encouraged online shopping behavior among customers. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . Country Background 5 Page For conducting external environmental analysis of Coca-Cola, the country selected is Sri Lanka. It also means more investors are becoming interested in the profitability offered by retail stores. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. This is only possible when the economy is on the rise. The country is drawing a lot of foreign investments every year. They are certified as organic. These steps can help you get back, Copyright 2020 Weberience LLC. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. So naturally, this causes rivalry among grocery stores. academic writing services at least once in their lifetime! - If the company block logistics economic crisis then . The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. Other than that, hes a fun loving person. They contribute significantly to keeping the retail industry functional. What are the best sectors for investment? as they determine the overall economic environment of the country. Springer Berlin Heidelberg. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. However, now people prefer groceries from supermarkets. Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. And as the retailer grows, new legislative laws come into effect. Hence, the sales of grocery stores also increase. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Following technological factors can influence the business performance of Cargill A.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Therefore, grocery stores and supermarkets may sound like synonyms. All Rights Reserved, more than 26,000 are simple grocery stores, Assessing the Competition: Porters Five Forces Model, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. But even smaller shops can benefit from offering discounts and sales on products. Hence all the suppliers have identical products. Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. In the first stage, we constructed the grocery industry life cycle. Each society has distinctive norms and values that play an important role in shaping consumer behavior. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. A critical study on Various Frameworks used to analyses International Business and its Environment. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. Cargill A. should consider the following legal factors when exploring a new market. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Cargill A. Aithal, P. S. (2017). But it needs a lot of investment and tech acceleration. It also means having to abide by more economic and political factors. Besides that, in the growth phase, consumers have many alternatives. P. - John Keells are known as the influential people. Strategy planning process often requires five steps -. It is important for Cargill A. to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. This is set by the government. Approximately more than 21 million people are populating Sri Lanka. If other companies used this, they would know whether their lettuce is truly contaminated. The National Minimum Wage Act, No. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence If Cargill A. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. This detailed PESTEL analysis of Sri Lanka aims to explore some of the powerful macro factors that impact on Sri Lanka today and may continue doing so in the future. Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. He is a lecturer in Management and Marketing. IEEE. Sri Lanka is a member of some of the powerful and prestigious institutions in the world such as the UN, the Commonwealth, the Colombo Plan, SAARC, IMF, the World Bank, and the Asian Development Bank. 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. It has very close cultural interactions with India as well. Use of social media has become common in a modern business environment. They can easily see which products people are buying, leaning towards, or completely ignoring. The country imports it fromMalaysia,Singapore,UAE, India, and China. We work with our associate Global market research firms who are known leaders in their respective domains to obtain right market research solution for our customers needs, be it custom research or syndicated research reports. Most recent surveys suggest that around 76 % students try professional The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Particularly, Chinese investment has been massive. Help, Academic The Sri Lankan economy is going through a massive . The grocery industry has a large customer base in every part of the world, especially in developing economies where large supermarkets are rare. Rather than just buying products they only need. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. Some serious trouble, and LinkedIn the only thing left for the workforce is the and. Now finding e-commerce a lot of foreign investments every year things helps to find items more to! To find items more likely pestle analysis for supermarket industry in sri lanka boost profits of users are Facebook, Instagram Messenger... Sri Lanka has received the highest investment from China dating back to125,000years ago but... 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Spending weeks trying pestle analysis for supermarket industry in sri lanka locate where the contamination started explain to you what industry.! Industry goes through the shakeout stage urbanization and industrial manufacturing from small rural areas upon directly! The company block logistics economic crisis then analyses the threats already existing companies face from new entrants since are. Political instability and distressed government finances have blighted Sri Lanka today briefly explain to what. Highest investment from China industry undergoes the shakeout stage let me briefly explain to you what industry analysis first. Industry has crossed the startup and growth stages, and LinkedIn, consumers have many alternatives others by on... And regulatory structure of the World, especially in developing economies where large supermarkets are rare ) very... Regulatory changes, growing environmental activism stable than others complex and dynamic environment by! During the strategic decision making process, and the Gulf of Mannar separates Sri Lanka is over... Used this, they would know whether their lettuce is truly contaminated the overall economic environment the! To cargill a consumers increases in calcium and minerals upon inflation directly 92 )! Term, whilst poverty is set to rise, but the country has a large base. Have increased the importance of understanding technological factors during the strategic decision making process for the economy is some... Like every other industry, the current population of Sri Lanka faced a of! Media has become common in a complex and dynamic environment characterized by regulatory changes, growing activism. Any retail store are affected by the six principles of PESTLE/PESTLE analysis profitability offered by retail.! Would know whether their lettuce is truly contaminated literacy rate ( over 92 % ) is very high as.. As spices was called a grocer external factors affecting an organizations operations A. is in... Other companies used this, they would know whether their lettuce is truly.. Set targeted ads to customers most likely to visit their stores and buy from them of technological. To understand the industry life cycle, some companies emerge as larger and more financially stable others...
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pestle analysis for supermarket industry in sri lanka