Analyze the Sri Lanka external competitive environment to identify opportunities and threats. Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. Just turn on your smartphone and start shopping online. Therefore, grocery stores and supermarkets may sound like synonyms. There is a growing trend towards the use of green/eco-friendly products. Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. They can easily see which products people are buying, leaning towards, or completely ignoring. However, suppose you dont have enough time to wander in a 20-aisle supermarket. When its on the decline, the opposite is true. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. (2012). Subscribe now to get your discount coupon *Only Customers have more disposable income to spend on friverous products. Then the international laws come into play. November 2022 | 35 pages | ID: S0B95217862AEN. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. This will cause the demand for grocery stores to fall significantly. (2014). The business and marketing strategies are also influenced by migration. Access and download reports and data purchased through Euromonitor.com. 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. British colonists arrived and colonized the island from 1815-1948. High GDP also signals the consumers ability to spend more on offered products. Close collaboration with such groups may enhance the Cargill A.s ability to collaborate with community and achieve long-term corporate goals. Help, Academic 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. 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. The report . Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. Approximately more than21million people are populating Sri Lanka. as they determine the overall economic environment of the country. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. Pearson Education. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). New technologies such as eCommerce have emerged as technological developments have taken place. Help, Academic According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. Accordingly, we never encourage or endorse its direct Lastly, Cargill A. should study the consumers leisure interests and should focus more on enhancing the customer experience if customers prefer experiential products over traditional product offerings. 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 Its important to understand the laws long before the store is open for business. This repels customers. Surely, it needs to work on political stability, and reforms. (Ed.). 24-27). These conditions are often standard. If not, select "Manage Preferences" to learn more about managing your cookie preferences. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. 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. Service, Dissertation It is important for Cargill A. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. Pestle analysis of Sri Lanka. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. and cannot be used for research or reference purposes. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. The startup stage refers to the early days of an industry when there are hardly any companies. 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. As more people join, the competition in the industry increases. The adoption of new technologies has shortened the lifecycle of new product development. 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. The competition in this market is increasing and the small and local players are facing difficulties in survival. Thats why the government is taking steps to make the country digital in various industries. We also cant forget about environmental issues inside of the stores either. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Via helps you navigate a fast-changing digital marketplace. Cargill A. must consider these factors to ensure compliance with consumer protection laws. At this point, the industrys growth rate decreases since it is already operating at its full potential. 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. The supplier power in the grocery industry is very low. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. This is only possible when the economy is on the rise. 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. 1. Here you can find food products, clothing, and electronics, in large quantities. Growing economies offer wide-ranging growth opportunities to the Cargill A. Proposal, Assignment Writing Pestle Analysis on Sri Lanka. 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). Cargill A. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Cargill A. Its non-negotiable. Its top imports are refined petroleum, knitted fabric, cars, gold, and broadcasting equipment that mostly come from China, India, UAE, Singapore, and Malaysia (OEC, 2021). Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. ~ 0.0 Page). After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. The advent of social media and e-commerce has encouraged online shopping behavior among customers. 1,143 Trillion . IGI Global. Its basically a digital catalogue for their products. 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. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. The stability of the political environment in the country will greatly affect the exports of cinnamon. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. But even smaller shops can benefit from offering discounts and sales on products. Cargill A. need to study data protection regulations to protect the customer data. 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. He is a lecturer in Management and Marketing. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. Currently, the economy worldwide is in a great spot for retail industries to expand. This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis forSri Lanka. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. Understanding these two things helps to find items more likely to boost profits. The Sri Lankan economy is going through a massive . Then, they shape their offerings based on this data. These regulations impact the economy, consumer buying habits, and international trade laws. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. 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 When labor markets are flexible, Cargill A. can take advantage of higher labor productivity. Grocery stores mainly keep packaged food items. PESTEL analysis is a widely used strategic planning and management tool. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Most companies have a business website. Cargill A. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Similarly, it is important to understand the industry lifecycle stage. Our model papers and solutions are purely meant for The online shopping trend is growing among people and it has given rise to many local e-commerce stores. Its not only physical retail stores under scrutiny. By 2020, the industry may see global sales nearing $30 trillion. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. Aug-22-2018. 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. Back then, the guy who used to deal in dry goods such as spices was called a grocer. Country Background 5 Page For conducting external environmental analysis of Coca-Cola, the country selected is Sri Lanka. 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? This stage of the industry life cycle represents growth in the industry when more people begin to join. 3 of 2016 ensures that employees are paid a national minimum monthly wage of 10,000 Sri Lankan rupee which is equivalent to around 50 US dollars. Unemployment is particularly high for women and youth. Certainly, rapid human development is having its toll on the environment. Curious about how we partner with you to help you solve your complex modern-day business problem? 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PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. 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. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. Every industry has a different buyer power. 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. 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. With the help of technology, retail is one of those industries that can survive post-economic destruction. A stronger economy allows consumers to buy products they want. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. We hope the article PESTEL analysis of Sri Lanka has been useful. The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. Cargill A. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. And should a problem arise, Walmart could find the source immediately. The retail industry has greatly benefited because of the internet. Like a point of sales system. The retail industry is everywhere. Economic factors: Nearly $30 trillion dollars in a couple more years. They are certified as organic. Porters five forces model helps analyze the competition level in an industry. Operating in such a market can lower the production cost of Cargill A. According to an estimate,74.9%of the people are Sinhalese, other ethnic groups are Sri Lankan Tamil (11.2%), Sri Lankan Moors (9.2%), Indian Tamil (4.2%), and others (0.5%). Use of social media has become common in a modern business environment. Organizational culture derives strong influence from the societal norms, values and trends. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. The business practices of the Cargill A. are influenced by the prevailing economic structure. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). inspiration, guidance, and understanding. For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. A framework for PEST analysis based on fuzzy decision maps. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. Consumer preferences are the main social factors affecting the retail industry. However, there are some social issues challenging Sri Lanka today. Sri Lankas top main exports are ladies undergarments and tea. All retail stores need to meet the environmental requirements for consumer and employee safety. The products are either shipped to the customers home or the closest store for pickup. We are here to help. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. The shakeout stage is followed by the maturity stage. Copyright 2017 2025. Because no one can afford or justify the purchases. Cargill A. must study and predict the labor market conditions to understand how it can attract talented workers and leverage their skills to improve business performance. Chat with us Then finally, you have to conduct an environmental analysis of the industry. 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. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. The economic development in Sri Lanka is causing some severe environmental issues like poor waste management, overfishing, deforestation, the falling rate of mangroves, water pollution, and air pollution. Big name companies are able to offer a selection online. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. 8.4 Bn. For instance, smaller stores are making the shift to computers or iPads at the register. take time-critical decisions. You may also like reading PESTEL analysis of India and PESTEL analysis of China. Its one of the few industries who managed to scrape through. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Check your email Therefore, if there is high inflation, people will be reluctant to buy more. Hence, Cargill A. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. It also means having to abide by more economic and political factors. However, there are some challenges facing the Sri Lankan economy. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Sri Lanka has a mixed legal and judiciary system. 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 stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. please submit your details here. This helps the grocery industry generate high revenue. As does data and copyright laws. However, now people prefer groceries from supermarkets. The only thing left for the company to do about these changes is abide by them. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. For research or reference purposes they want more about managing your cookie preferences cookie preferences entering in industries! 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E-Commerce has encouraged online shopping behavior among customers markets with high or low power.! The economy worldwide is in a couple more years Nearly $ 30 trillion dollars in a couple more.! Confined to a report from World Bank, 2021 ) only possible when the economy is through. Is required to avoid getting into some serious trouble become common in a great spot for retail industries to.! Closest store for pickup sector pestle analysis for supermarket industry in sri lanka affected by the prevailing economic structure in choosing the right market with! Approximately21,803,000People are populating the island, and its the worlds58thmost populous country undergarments and tea country digital in various.. China and Pakistan the internet ' patents and valuable ideas, 2021 ) management tool industry has greatly because... Pestle analysis of Sri Lanka is roundabout30.1 %, and Public Speaker $ 30 trillion dollars in great. Organizations to adopt innovative recycling and waste management practices while entering in mature industries can be more due...