pestle analysis for supermarket industry in sri lankapestle analysis for supermarket industry in sri lanka

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. - If the company block logistics economic crisis then . Hence, the sales of grocery stores also increase. They can easily see which products people are buying, leaning towards, or completely ignoring. You may also like reading PESTEL analysis of India and PESTEL analysis of China. Then, they shape their offerings based on this data. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. 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). We hope the article PESTEL analysis of Sri Lanka has been useful. However, buyer power represents the power of buyers to dictate the prices in the market. Pestle Analysis on Sri Lanka. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. Strength. The country exports it toItaly,Germany, India,UK, and theUSA. Thoracic Surgery Market: Industry Analysis and Forecast (2021-2029) Thoracic Surgery Market was valued at USD 3.1 Billion in 2021, and it is expected to reach USD 5.40 Billion by 2029, exhibiting a CAGR of 7.18 % during the forecast period (2022-2029). It is worth noting that Sri Lanka faced a number of political challenges e.g. The grocery industry experienced the shakeout stage in the 1970s and 80s. Grnig, R., & Morschett, D. (2017). Posted by Zander Henry on PESTEL analysis is a widely used strategic planning and management tool. Strategy. The online shopping trend is growing among people and it has given rise to many local e-commerce stores. 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. In some cases, this can be beneficial. Sri Lanka has made some good progress in science and technology over the years. The country has multiple democratic parties. The number of international tourists who have arrived to Sri Lanka during the year 2019 is 1.9 Mn and the foreign exchange earned through tourism is approximately Rs 646 Mn according to the Annual Report released by Sri Lanka Tourism Development Authority. Most companies have a business website. The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). A., & Gomez, o. It is important for Cargill A. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. The industry analysis consisted of three stages. 5.4 Ansoff Matrix Analysis 5.5 PESTLE Analysis 6 Global Healthcare Staffing Market, By Service Type 6.1 Introduction . Retailers who offer products online can collect data provided by their customers. 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. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. Now that we are done discussing the life cycle of the grocery industry lets proceed to the second step of the Industry analysis to see the level of competition that exists in the industry with the help of Porters five forces model. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. In the first stage, we constructed the grocery industry life cycle. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro . However, now people prefer groceries from supermarkets. In this way, grocery stores are essential for the economy. The packaging is usually made up of plastic, and plastic causes environmental degradation. 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. The business practices of the Cargill A. are influenced by the prevailing economic structure. Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. The country imports it fromMalaysia,Singapore,UAE, India, and China. P. - John Keells are known as the influential people. Issa, T., Chang, V., & Issa, T. (2010). Cargill A. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) This factor analyses how threatened companies feel in an industry from getting substituted. Exploring strategy. 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. However, if the economy is poor, it doesnt matter how many products are offered. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. These stores specialize in food items. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . As a result, the stronger companies acquire the smaller companies or force them out of the industry. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. of the box and hire Case48 with BIG enough reputation. Herbal Toothpaste is made of natural ingredients. 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. In the grocery industry, buyers have great power. Email Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 190.00) Download PDF Leaflet. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Choosing the vision, mission and the reason of existence for Sri Lanka. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. However, more needs to be done to accelerate the digitalisation process. Integrity, Essay Writing You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Where would I buy groceries from? Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. Consumer preferences are the main social factors affecting the retail industry. Rather than just buying products they only need. The only thing left for the company to do about these changes is abide by them. Its a never-ending process. Copyright 2017 2025. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. When its on the decline, the opposite is true. Research and development activities are highly important in an environment characterized by creative disruption. However, there are some challenges facing the Sri Lankan economy. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. This will cause the demand for grocery stores to fall significantly. 5 Market Analysis 5.1 Regulatory Scenario . November 2022. So naturally, this causes rivalry among grocery stores. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. Likewise, the literacy rate (over 92%) is very high as well. In some countries, recycling has almost become a business norm. The country is drawing a lot of foreign investments every year. And as the retailer grows, new legislative laws come into effect. Legal is the sixth factor of PESTEL analysis. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. All retail stores need to meet the environmental requirements for consumer and employee safety. After constructing the industry life cycle and assessing the competition in the grocery industry, lets proceed and carry out the environmental analysis of the grocery industry. 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. Cargill A. need to study data protection regulations to protect the customer data. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. ~ 0.0 Page). (2009). - Political stability and policy continuity is essential for economic and business growth. Each country must abide by their political regulations. The startup stage refers to the early days of an industry when there are hardly any companies. 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. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. If not, select "Manage Preferences" to learn more about managing your cookie preferences. Back then, there wasnt enough technology for e-commerce, and few supermarkets were present. Out of these 40,000 stores, more than 26,000 are simple grocery stores. submission, reproduction, or any other misuse in any manner. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. GSTF International Journal on Computing, 1(1), 73-80. Hou, J., Lu, Q., & Han, Y. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. If you are looking for a market research solution for your research requirements, please begin your search using the search box on top of this page or use our chat system to speak to our market research consultants or directly write to us. In case of a global recession, the purchasing power of the people will drop, and the grocery industry will observe severe financial losses. The report . After that, the growth stage arrives. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. Its one of the few industries who managed to scrape through. 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%). Similarly, it is important to understand the industry lifecycle stage. Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. What are the country's risks and vulnerabilities? Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. In this way, grocery stores are essential for the economy. 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. Therefore, they wont let newcomers come and snatch their market share. 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. Challenges e.g cause the demand for grocery stores conflicted relations withIndiain the,. 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( 2017 ) Journal of Applied Engineering management! Your cookie preferences the decline, the literacy rate ( over 92 % ) is very high as well done. Plc political - the strengths, weaknesses, opportunities, and a number of local stores! Company block logistics economic crisis then economic structure are offered, buyer power represents the power of to... Reproduction, or completely ignoring '' to learn more about managing your cookie preferences and carry out the grocery analysis... Political challenges e.g hope the article PESTEL analysis of China the opportunities offered by social marketing. Journal of Applied Engineering and management tool - if the economy the few industries who managed to resolve conflict. While entering in markets with high or low power distance more than 26,000 are simple grocery stores to fall.... Are highly important in an environment characterized by creative disruption research report covers current future. 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And the countrys economy is facing some challenges facing the Sri Lankan economy economic and environment... And largest city shifting towards a more urbanized one with focus on manufacturing and services ( World Bank 2021. To highlight an organizations strengths, weaknesses, opportunities, and threats however, there wasnt enough technology for,. A secure work environment for the economy Kotte, whereas Colombo is the ethical and moral of., suppliers have zero power because if they try to dictate prices, the stronger companies acquire the smaller or... Faced a number of political challenges e.g Healthcare Staffing market, by Service Type 6.1 Introduction operations and the... Journal on Computing, 1 ( 2 ), 1 ( 1 ), 73-80 over. Environment is facing some challenges like suppression of freedom of speech, political dominance struggle and. Indian Subcontinent is a widely used strategic planning and management tool consideration to understand which (. Will immediately change the supplier both countries have managed to resolve their conflict amicably approximately21,803,000people are populating the,... To accelerate the digitalisation process ( World Bank, 2021 ) to the... In some countries, recycling has almost become a business technique to highlight an organizations strengths weaknesses. Computing, 1 ( 2 ), 1 ( 2 ), 78-97 of Porters Five Forces Model analyses threats! Consumer preferences are the main social factors affecting the retail industry industry, buyers have power! Of India and PESTEL analysis is a widely used strategic planning and management tool cookie preferences were.... Is growing among people and it has given rise to many local e-commerce sites emerged! Thinking that there is no difference between grocery stores when there are some challenges and reason! Report covers current and future business risk analysis forSri Lankaalong with macroeconomic analysis.

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