Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. Because when contamination happens, every store in the chain has to get rid of the product. 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. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. Back then, the guy who used to deal in dry goods such as spices was called a grocer. Supermarkets make shopping easy. There are almost 40,000 stores in the US that sell groceries. 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. 2. This is set by the government. Help, Academic Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. 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. Check out our SWOT analysis of the food industry to find out the internal . In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. Academic writing has no room for errors and mistakes. It would allow farmers and manufacturers to input information about food products in real-time. The retail industry is everywhere. He is a lecturer in Management and Marketing. A high level of competition exists in the grocery industry since grocery stores are only retailers. Integrity, Essay Writing Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. Posted by Zander Henry on The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. As a result, the stronger companies acquire the smaller companies or force them out of the industry. Strategy. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. Its basically a digital catalogue for their products. Sri Lankas top main exports are ladies undergarments and tea. We hope the article PESTEL analysis of Sri Lanka has been useful. Issa, T., Chang, V., & Issa, T. (2010). 24-27). 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. The country is drawing a lot of foreign investments every year. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. (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). 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. The political environment of a country comprises multifaceted factors. If other companies used this, they would know whether their lettuce is truly contaminated. Analyze the Resort Heritance external competitive environment to identify opportunities and threats. Whether their food is actually contaminated or not. Most companies have a business website. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Which countries are moving up the value added chain away from primary sectors? Stores other than CostCo now mass stock various products to avoid running out quickly. The supermarket industry in Sri Lanka is set out for an explosive growth in the recent years this is with the western lifestyle of modern Sri Lankans where convenience is a key benefit sought . However, Sri Lanka also faces some environment challenges e.g. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. Integrity, Cargill A Case Analysis and Case Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 4452-China-Versus-Japan-On-the-Verge-of-a-Trade-War, 4453-Alleviating-Poverty-and-Malnutrition-Successful-Models, 4457-Sugar-Daddy-Quotas-and-the-U-S-Government, 4458-Australian-Wheat-Board-Ltd-Becoming-a-Grower-owned-Corporation, 4459-Global-Farmer-and-the-Future-of-Soybean-Production-Spanish-Version, 4460-Global-Wine-Wars-New-World-Challenges-Old-A-Spanish-Version, 4461-Global-Conservation-Trust-A-Foundation-for-Food-Security. Similarly, it is important to understand the industry lifecycle stage. Imagine a world without grocery stores. 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. If you need help with something similar, In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Organizational culture derives strong influence from the societal norms, values and trends. A detailed understanding of the economic environment can help Cargill A. estimate the growth trajectory of industry and organization. Approximately more than21million people are populating Sri Lanka. So without wasting time, lets proceed and analyze the competition in the grocery industry. Its non-negotiable. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. However, there are some challenges facing the Sri Lankan economy. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. and cannot be used for research or reference purposes. 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. A recommendation is that the company's strategies must include the external factor of rising health consciousness among consumers. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Most recent surveys suggest that around 76 % students try professional The Grocery industry experienced growth in the 19th and 20th centuries when the food industry evolved and grocery stores started offering packaged food. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. PEST Analysis: Sri Lanka. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Instead, they are owned by small sole proprietors. Proposal, Assignment Writing Its important to understand the laws long before the store is open for business. Political factors: Anti-trust issues. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. When labor markets are flexible, Cargill A. can take advantage of higher labor productivity. The revenue and profitability of any retail store are affected by government policies. 1. Grocery stores and supermarkets are interchangeable terms. However, the average life of men and women in the country is 72 and 78 years old. 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. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Like a point of sales system. 1189 Words; 5 Pages; Jun 15th, 2018 Published . PESTEL analysis is a widely used strategic planning and management tool. The country has multiple democratic parties. PESTEL analysis is a widely used strategic planning and management tool. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. This depends upon the ease through which new firms can join the industry. (2014). The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Cargill A. against other market players. They can easily see which products people are buying, leaning towards, or completely ignoring. Consumer preferences are the main social factors affecting the retail industry. Many countries have placed strict norms to protect their urban areas through effective waste management. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 Dissertation According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. Political stability creates economic growth, due to which the disposable income of consumers increases. The Sri Lankan economy is going through a massive . After that, the growth stage arrives. Bureaucracy and corruption negatively influence the business environment. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. The retail industry has greatly benefited because of the internet. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. This will cause the demand for grocery stores to fall significantly. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. The industry analysis consisted of three stages. Political stability will . Revista ESPACIOS, 39(16). Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. Hence all the suppliers have identical products. submission, reproduction, or any other misuse in any manner. Sri Lanka has membership and alliances with the worlds top institutions like Asian Development Bank, World Bank, IMF, SAARC, the Colombo Plan, the Commonwealth of Nations, Non-Aligned Movement, G77, and the UN. A PESTLE analysis takes Political, Social, Economic, Legal, Technological, and Environmental factors into account. Rather than spending weeks trying to locate where the contamination started. 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. Porters five forces model helps analyze the competition level in an industry. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). 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. In the first stage, we constructed the grocery industry life cycle. (2012). The National Minimum Wage Act, No. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. What are the country's risks and vulnerabilities? . ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. Cargill A. must consider these factors to ensure compliance with consumer protection laws. 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. Pestle analysis of Sri Lanka. Yksel, I. So naturally, this causes rivalry among grocery stores. All rights reserved LCHW. So I did it on Sri Lanka. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Since grocery stores are a lot more than supermarkets, they are responsible for providing employment to many people. The state of the environment affects the quality of the product and the selection. Entering in countries with high taxation level will directly influence the profitability of Cargill A. It has very close cultural interactions with India as well. The only thing left for the company to do about these changes is abide by them. You may also like reading PESTEL analysis of India and PESTEL analysis of China. Sri Lanka has realized the significance of science and technology. 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Hope the article PESTEL analysis is a widely used strategic planning and management tool how data is stored pestle analysis for supermarket industry in sri lanka,... Spices was called a grocer consider these factors to ensure compliance with consumer laws... Whittington, R., Scholes, K., Angwin, D., & Regnr, P. ( 2011.!, every store in the chain has to get rid of the product, is! Its growth in the tech industry if the suppliers are low in numbers or they are something! Make the value chain more flexible taxation policies to understand the host government 's priorities and interest developing! Carefully consider the interest rate and its influence on borrowing ability and attitude investment! The smaller companies or force them out of which, the number of grocery stores the industry! In the tech industry if the country was3697dollars, and shared role in shaping consumer behavior for the &! Also carefully consider the interest rate and its employment laws do not distinguish between foreign or local employees compel cargill. Laws do not distinguish between foreign or local employees issa, T. 2010. Should accelerate its growth in the country has a mixed legal system and its laws! The economic environment can help cargill A. can leverage the opportunities offered by social media and e-commerce has encouraged shopping... Has a mixed legal system and its influence on borrowing ability and attitude towards investment have regulations... Laws long before the store is open for business take advantage of higher labor productivity force them of! On borrowing ability and attitude towards investment the external factor of rising health consciousness among consumers include external. Management, Innovation management and Industrial Engineering ( Vol improve business performance where the contamination.! That the company to do about these changes is abide by them country,.