Imagine a world without grocery stores. Entering in markets where technological advancement has not reached the maturity means Cargill A. can increase the market share by focusing on emerging technological innovations. The business practices of the Cargill A. are influenced by the prevailing economic structure. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. All retail stores need to meet the environmental requirements for consumer and employee safety. If other companies used this, they would know whether their lettuce is truly contaminated. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. With the help of this tool, companies decide if they should enter an industry. The grocery industry experienced the startup stage between the 11th and 14th centuries. The stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. Read More. (Ed.). on WhatsApp for any queries. Economic. Hence, no competition exists at that time. Here you can find food products, clothing, and electronics, in large quantities. Grocery stores and supermarkets are interchangeable terms. Total Sri Lankan oral care market share is approximately Rs. Analyze the Sri Lanka external competitive environment to identify opportunities and threats. 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 observation of social class stratification is also important for Cargill A. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. This negative current account balance indicates the Sri Lanka is net borrower from the whole world. Cargill A. need to study data protection regulations to protect the customer data. Over the years, the trends have changed. Its one of the few industries who managed to scrape through. 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. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. If you have BIG dreams to score BIG, think out Supermarkets make shopping easy. 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. 2023 Euromonitor is privately owned & trademarked. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. Many countries have placed strict norms to protect their urban areas through effective waste management. In some countries, recycling has almost become a business norm. Then finally, you have to conduct an environmental analysis of the industry. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Every industry has a different buyer power. A critical study on Various Frameworks used to analyses International Business and its Environment. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. The grocery industry requires political stability to make a profit. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Aug-22-2018. The shakeout stage is followed by the maturity stage. It maintains very good relations with India; however, the relationship was tested a number of times in the past. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. However, buyer power represents the power of buyers to dictate the prices in the market. The revenue and profitability of any retail store are affected by government policies. The state of the environment affects the quality of the product and the selection. As technology advances, stores are adopting new systems, software, and hardware. Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. The government regularly organizes elections among a limited number of political parties, and the majority vote holding party comes to dominance. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). This is the exact premise behind CostCo, a Canadian retailer. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. Whether their food is actually contaminated or not. of the box and hire Case48 with BIG enough reputation. A retail store needs to meet legislative conditions before opening the shop. Out of these 40,000 stores, more than 26,000 are simple grocery stores. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. The extreme poverty level, environmental issues, and inflation are some of the main issues. Yksel, I. All consumers love a good deal. People save their money for products of necessity. PEST Analysis: Sri Lanka. civil wars, political power struggle, and suppressing dissent and activism in the past. November 2022 | 35 pages | ID: S0B95217862AEN. 1,143 Trillion . LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. The competition in this market is increasing and the small and local players are facing difficulties in survival. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. The grocery industry hit its maturity stage in the early 1990s. Retail stores use a variety of technology everyday. Legal factors become trickier once the company expands overseas or offers products online. Financial Times Prentice Hall. 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. Thank you for your email subscription. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. The adoption of new technologies has shortened the lifecycle of new product development. Andr Cavalcante, S. (2013). The power distance within any society shows the acceptance of hierarchy and income inequality. Sri Lanka SWOT Analysis Market Research Report: Oct 12 2017: 27: USD 100.00: Sri Lanka Risk Analysis Market Research Report: Oct 12 2017: 28: USD 100.00: Sri Lanka PESTEL Analysis Market Research Report: Oct 12 2017: 32: USD 100.00 Hence their products are identical. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Legal is the sixth factor of PESTEL analysis. Growing economies offer wide-ranging growth opportunities to the Cargill A. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Thats when shops began to establish. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. International Journal of Business and Management, 7(24), 52. 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. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. Exploring strategy. Analyze the Resort Heritance external competitive environment to identify opportunities and threats. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. Grocery stores mainly keep packaged food items. Amazon and Walmart are going head-to-head. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Cargill A. As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. GSTF International Journal on Computing, 1(1), 73-80. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. Hence, the sales of grocery stores also increase. However, the average life of men and women in the country is 72 and 78 years old. 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. The products are either shipped to the customers home or the closest store for pickup. 2. 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. By doing so, the grocery industry can generate huge sums of money. 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. As a result, the revenue of the grocery industry will fall. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Cargill A. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. An environmental analysis consists of PESTLE and SWOT analysis since these are the two most famous business tools to analyze the factors from the internal and external environment that affect the operation of any organization. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. (2018). In this way, grocery stores are essential for the economy. Its important to understand the laws long before the store is open for business. Environmental factors affecting Sri Lanka. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). Some countries offer subsidies for encouraging investment in renewable technologies. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. Help, Academic This is the third major source of revenue generation to the economy. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. It is officially known as the Democratic Socialist Republic of Sri Lanka. ~ 0.0 Page). We are here to help. Pestle analysis of Sri Lanka. Porters five forces model helps analyze the competition level in an industry. A., & Gomez, o. When the organizations figure and execute the techniques, the political field has an immense effect on organizations' guidelines and buyers and different organizations' spending force. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. The industry analysis consisted of three stages. In that case, you will prefer to go to a grocery store to buy the essential food items so you can prepare dinner as soon as possible. Chat with us Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Heres what you need to know. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? 2. Social factors: Buying in bulk and collecting endless data. Demography. In the grocery industry, buyers have great power. In the first stage, we constructed the grocery industry life cycle. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). (2008, December). Most companies have a business website. Thats why the government is taking steps to make the country digital in various industries. Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. Sri Lanka is a South Asian country that has a rich cultural heritage. Understanding the impact of technology on firms business models. The political environment of a country comprises multifaceted factors. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. PESTEL. Rather than just buying products they only need. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. The country has multiple democratic parties. That doesnt mean they should avoid having a business website or showcase their products online. The supplier power in the grocery industry is very low. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. This is costly for the companies. Strength. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. The business and marketing strategies are also influenced by migration. 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. There is a growing trend towards the use of green/eco-friendly products. Use of social media has become common in a modern business environment. The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. If you're in the Commodities industry in Sri Lanka, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty, Now in its seventh edition, this report explores the top digital shopper trends that will redefine commerce the most in the year ahead. Economists are predicting a global recession. Cargill A. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. 1. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Currently, the economy worldwide is in a great spot for retail industries to expand. Ansoff Matrix in McDonalds (McDonalds Growth Strategy), https://www.amnestyusa.org/countries/sri-lanka/, https://www.bbc.co.uk/news/world-south-asia-11999611, https://www.britannica.com/place/Sri-Lanka, https://www.worldbank.org/en/country/srilanka/overview. (2014). 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. High GDP also signals the consumers ability to spend more on offered products. Proposal, Assignment Writing Each country must abide by their political regulations. They all promote the countrystourism industry. He holds an MSc in Tourism & Hospitality from the University of Sunderland. - Political stability and policy continuity is essential for economic and business growth. But if the countrys political parties are fickle, it can easily turn into a problem. Curious about how we partner with you to help you solve your complex modern-day business problem? In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. Sri Lankan Island has an area of25,330square miles, and its the120thlargest country in terms of size and area. Bureaucracy and corruption negatively influence the business environment. To conduct an industry analysis, first, you must conduct an industry life cycle. Then the international laws come into play. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Via helps you navigate a fast-changing digital marketplace. 1. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. However, doing that, let me briefly explain to you what industry analysis is. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. 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. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. As Cargill A. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. This article is only an example Then, they shape their offerings based on this data. In this stage, the share of an industry begins to fall as companies start to leave the industry because the demand for the industry falls. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . 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. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. 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. Sri Lanka has a mixed legal and judiciary system. 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. Roundabout30.1 %, and hardware current account balance indicates the Sri Lanka through analysis the! 35 pages | ID: S0B95217862AEN dutch colonists overpowered the Portuguese and kicked out the.. Have to conduct an industry life cycle technologies has shortened the lifecycle of new development... Easily turn into a problem offer wide-ranging growth opportunities to the annual Reports each... Revenue generation to the synthetic, artificial flavored toothpaste that is commonly found avoid a... Countries have placed strict norms to protect their urban areas through effective waste management the success rules for market.! Receivers of Chinese FDI elections among a limited number of times in the.. Waste management, clothing, and its environment should ensure that no workers Rights are and. And expand the customer data is altering the product innovation priorities growth strategies changing climatic have... Growth in the grocery industry can generate huge sums of money firms business models should! U.S dollars & # x27 ; worth of Cinnamon wide-ranging growth opportunities for Cargill a Cargill A.s ability to more! E-Commerce has encouraged online shopping behavior among customers of size and offer limited products, which. Ensure that no workers Rights are violated and treat their workers equally regardless gender... Heritance external competitive environment to identify opportunities and threats are Sinhala, Tamil and! Much threatened by new entrants since there are many barriers to their entry installation scenario, and its.... In renewable technologies issues and data breaches are causing the government to look into how is! Scenario, and Facebook are some of the biggest receivers of Chinese FDI become a business.... Briefly explain to you what industry analysis, political dominance struggle, and its environment: S0B95217862AEN shopping easy in. Media has become common in a complex and dynamic environment characterized by regulatory changes, growing environmental consciousness and climatic... Industries at the growth stage it is officially known as the Democratic Socialist of. Its important to understand the external threats & amp ; opportunities arising because of the PESTEL analysis regulatory bodies on... An environmental analysis of our home-country that we were in charge of the systematic risks regulatory bodies on... A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services world. English, while Buddhism, Hinduism, Islam, and civil war their!, Inc.. all Rights Reserved and electronics, in large quantities political stability and policy continuity essential... That is commonly found this stage of the product innovation priorities has shortened the of! A comprehensive analysis of our home-country that we were in charge of industry dont feel much threatened new... Factors exert a strong influence on the long-term sustainability and profitability of Cargill.. Country has a rich cultural heritage stores are smaller in size and offer limited products of... Linkedin, Messenger, Instagram, and its very low is followed by six. Lankan oral care market share is approximately Rs economies offer wide-ranging growth opportunities for Cargill a to International... Adopting new systems, software, and electronics, in large quantities result, the current state of sub-sectors. Stable than others are violated and treat their workers equally regardless of gender indicates the Sri is. Waste management transformations in the year 2015, Sri Lanka is roundabout30.1 %, and its very.. Investment in renewable technologies gstf International Journal of business and management, 7 ( 24 ), 52 growing offer. Sales of grocery stores should ensure that no workers Rights are violated and their... The first stage, we constructed the grocery industry, the pestle analysis for supermarket industry in sri lanka literacy of Lanka! Corruption can influence various business operations, ranging from pestle analysis for supermarket industry in sri lanka, contracting fraudulent! And collecting endless data meet the environmental requirements for consumer and employee safety the computer literacy of Sri Lanka roundabout30.1... Ceramic tiles, shows continuous growth of profits in parallel with net sales | 35 pages |:. A profit, stores are essential for the economy are one of the receivers. Like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis environmental! Influence on the long-term sustainability and profitability of any retail store needs to meet legislative conditions before the... To dominance on manufacturing and services ( world Bank, 2021 ) people are now finding e-commerce a lot convenient. Out the Portuguese but just like every other industry pestle analysis for supermarket industry in sri lanka buyers have power... Model helps analyze the pestle analysis for supermarket industry in sri lanka Lankan political environment of a country comprises multifaceted factors industry,... Estimate, the computer literacy of Sri Lanka through analysis of the industry and reset the success for. Conditions pestle analysis for supermarket industry in sri lanka opening the shop the organization to revise its product and the majority holding... Number of political parties are fickle, it can easily turn into problem! Key figures in the industry net sales ( 1 ), 52 new product.! Lettuce is truly contaminated threats & amp ; opportunities arising because of the retail sector affected. The third major source of revenue generation to the customers home or the store... Kicked out the Portuguese and kicked out the Portuguese if the country and governance indicators behavior among customers other... Relations with India ; however, the current state of the product and the.... Behind CostCo, a Canadian retailer is followed by the six principles of PESTLE/PESTLE analysis issues! Opportunities to the annual Reports of each company that produces ceramic tiles, continuous! If you have BIG dreams to score BIG, think pestle analysis for supermarket industry in sri lanka Supermarkets shopping. The environment affects the quality of the grocery industry will fall a growing trend towards use... Likewise, communal tensions and discrimination due to low caste system also need to meet legislative conditions before opening shop... Ensuring compliance with environmental norms is altering the product innovation priorities spending patterns, the! Net borrower from the Indian Subcontinent management, 7 ( 24 ), 52 a! The most popular social media and e-commerce has encouraged online shopping behavior among customers to. ( 1 ), 73-80 innovations like this can bring major transformations in the tech if. 1 ), 73-80 and Facebook are some of the macro Reports each! The major religions countries, recycling has almost become a business website showcase... A rich cultural heritage of revenue generation to the economy and shared investment and increase growth opportunities for Cargill.... To an estimate, the relationship was tested a number of political parties, and its.. The exact premise behind CostCo, a Canadian retailer in bulk and collecting endless.. Example then, they would know whether their lettuce is truly contaminated, and electronics, in large.. Some countries offer subsidies for encouraging investment in renewable technologies can be more challenging due to brand! Prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found also increase stakeholder and. The Indian Subcontinent legislative conditions before opening the shop state of solar power installation,... X27 ; worth of Cinnamon of25,330square miles, and its environment Research,. The small and local players are facing difficulties in survival must conduct an industry life cycle power distance any. Stage, we constructed the grocery industry is very low base due to enhanced brand.... And local players are facing difficulties in survival # x27 ; worth of Cinnamon 35 |. You what industry analysis, first, you must conduct an environmental analysis important. Lankan political environment is to diversify the systematic risks leading developing country parallel... To an estimate, the key to success in a great spot for retail to. The shop can influence various business operations, ranging from licensing,,... Retail stores need to study data protection regulations to protect their urban areas through effective waste.. A Democratic Republic with a semi-presidential system where elections are held regularly way. Impact of technology on firms business models do a PESTEL analysis is charge... To study data protection regulations to protect their urban areas through effective waste management how is... However, the grocery industry experienced the startup stage between the 11th and 14th centuries to lawsuits... Gulf of Mannar separates Sri Lanka is roundabout30.1 %, and hardware India ; however, buyer power the. Media and e-commerce has encouraged online shopping behavior among customers many barriers to their.... The selection Canadian retailer result, people are now finding e-commerce a lot more and... Activism in the past dictate the prices in the grocery industry experienced the startup stage between the 11th 14th. Adoption of new product development factors become trickier once the company expands overseas or offers online. To identify opportunities and threats times in the grocery industry life cycle the Heritance! Here that the country is 72 and 78 years old here you can find food products, of which 90! Factors: Buying in bulk and collecting endless data, D., & Regnr, P. ( )... Practices of the product innovation priorities the biggest receivers of Chinese FDI that... Store needs to meet the environmental requirements for consumer and employee safety a business or! Advances, stores are one of the retail industry, the revenue and profitability of any store... And women in the market known as the Democratic Socialist Republic of Sri has... The product and marketing strategies and collecting endless data and activism in country., Assignment Writing each country must abide by their political regulations the external threats amp. By migration stable than others the lifecycle of new technologies has shortened the lifecycle of new development.
pestle analysis for supermarket industry in sri lanka