Accordingly, we never encourage or endorse its direct The revenue and profitability of any retail store are affected by government policies. (2014). They all promote the countrystourism industry. A., & Gomez, o. A high level of competition exists in the grocery industry since grocery stores are only retailers. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. Analyze the Sri Lanka external competitive environment to identify opportunities and threats. The packaging is usually made up of plastic, and plastic causes environmental degradation. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. The grocery industry experienced the shakeout stage in the 1970s and 80s. PESTEL. However, there are some social issues challenging Sri Lanka today. He is a lecturer in Management and Marketing. The report . This factor analyses how threatened companies feel in an industry from getting substituted. This negative current account balance indicates the Sri Lanka is net borrower from the whole world. The high fluctuation on local currency can be a cause of serious concern for Cargill A. In the first stage, we constructed the grocery industry life cycle. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. Whether their food is actually contaminated or not. 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. Sri Lanka is home to various socio-cultural and ethnic groups though out in history. Country Profiles examine the economic and political trends in 210 countries and associated regions, serving as a one-stop-shop for data and analysis on the economy, political landscape and the business environment. Back then, the concept of a grocery store was very new, and few grocery stores existed. November 2022 | 35 pages | ID: S0B95217862AEN. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. By 2020, the industry may see global sales nearing $30 trillion. 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. Choosing the vision, mission and the reason of existence for Resort Heritance. Economic. Integrity, Essay Writing correct email will be accepted, (Approximately 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. 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. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Therefore, grocery stores and supermarkets may sound like synonyms. 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. Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). The threat of substitution is really high in the grocery industry. After that, the growth stage arrives. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. The extreme poverty level, environmental issues, and inflation are some of the main issues. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. However, this transformation is helping the country to attract foreign investors. Because no one can afford or justify the purchases. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. 11.12 Sri Lanka 11.13 Thailand Technology' is the fourth factor of PESTEL analysis. 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. In some countries, recycling has almost become a business norm. Strength. For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Customers have more disposable income to spend on friverous products. 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 supplier power in the grocery industry is very low. GSTF International Journal on Computing, 1(1), 73-80. The grocery industry holds great significance since it provides groceries and employment to millions of people. After the growth stage, an industry undergoes the shakeout stage. 1. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . 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. Industry analysis provides complete insight into an industry. Its one of the few industries who managed to scrape through. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. These stores specialize in food items. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. Grocery stores mainly keep packaged food items. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. This shows that although people consider supermarkets the new go-to place, actually these grocery stores provide groceries to most of the US. Synopsis. Instead, they are owned by small sole proprietors. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. Pestle analysis of Sri Lanka. If you have BIG dreams to score BIG, think out The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. For instance, people enjoy buying products in bulk. The hospitality industry needs to worry about . Grnig, R., & Morschett, D. (2017). They are certified as organic. Sri Lanka has realized the significance of science and technology. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. These steps can help you get back, Copyright 2020 Weberience LLC. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. However, the average life of men and women in the country is 72 and 78 years old. It also means having to abide by more economic and political factors. All rights reserved LCHW. Although the eat-in format in limited-service restaurants dominated value sales pre-pandemic, it was already losing ground to takeaway and home-delivery options, Standalone remained the dominant format of consumer foodservice outlets in Mexico in 2022, due the proximity of these operators to residential areas. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Cargill A. need to study data protection regulations to protect the customer data. Copyright 2017 2025. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. (2009). Sri Lanka is a South Asian country that has a rich cultural heritage. Solution, Assignment Writing Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. 24-27). But even smaller shops can benefit from offering discounts and sales on products. These regulations impact the economy, consumer buying habits, and international trade laws. The adoption of new technologies has shortened the lifecycle of new product development. A recommendation is that the company's strategies must include the external factor of rising health consciousness among consumers. 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. 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. 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. - If the company block logistics economic crisis then . (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. 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. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Stores offering food products must comply with health guidelines proposed by the government. The Grocery industry experienced growth in the 19th and 20th centuries when the food industry evolved and grocery stores started offering packaged food. please submit your details here. The country is drawing a lot of foreign investments every year. Its not only physical retail stores under scrutiny. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. A framework for PEST analysis based on fuzzy decision maps. Cargill A. should consider the following legal factors when exploring a new market. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. It is worth noting that Sri Lanka faced a number of political challenges e.g. Retail stores use a variety of technology everyday. This will cause the demand for grocery stores to fall significantly. Then the international laws come into play. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. 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. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. In the early days, people preferred buying groceries from grocery stores. However, more needs to be done to accelerate the digitalisation process. A strategic framework for technology evaluation. IEEE. You dont have to walk down the street to your favorite shop anymore. Not only to streamline services, but also to reach audiences worldwide. 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. In this way, grocery stores are essential for the economy. 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. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Regulations to protect the customer data million ( Worldometer, 2021 ) strategies must include the factor! Products must comply with health guidelines proposed by the government more disposable income spend. Analyze the Sri Lanka should accelerate its growth in the grocery industry growth... Adoption of new technologies has shortened the lifecycle of new technologies has shortened the lifecycle of new product.! 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