Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. In fact, Sri Lanka has received the highest investment from China. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. Social factors: Buying in bulk and collecting endless data. Today, new products are developed quickly, and supply chain partners have also gained more power. Rather than just buying products they only need. Developing strategic business models and competitive advantage in the digital sector. 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. More retail shops are offering food products. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. 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. Or learn more about our privacy policy and how we use and store your data. 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. Legal is the sixth factor of PESTEL analysis. The supplier power in the grocery industry is very low. The industrys supplier power represents suppliers power to dictate prices. Scope of Sri Lanka - PESTEL Analysis Report. 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. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. Sri Lanka is a South Asian country that has a rich cultural heritage. This is why grocery stores in the industry feel threatened. Bureaucracy and corruption negatively influence the business environment. IEEE. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. 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 . Moreover, considering the development and maturity level of technology in the respective market is also important. 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. The stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. to get Coupon Code. Pestle analysis of Sri Lanka. 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. We also cant forget about environmental issues inside of the stores either. However, Indian and Sri Lankan cultures are almost the same. Cargill A. must consider these factors to ensure compliance with consumer protection laws. Economic factors: Nearly $30 trillion dollars in a couple more years. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. The grocery industry experienced the startup stage between the 11th and 14th centuries. A stronger economy allows consumers to buy products they want. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. In this industry, buyers set prices because they are sensitive to prices. These regulations impact the economy, consumer buying habits, and international trade laws. Research and development activities are highly important in an environment characterized by creative disruption. All consumers love a good deal. What are the best sectors for investment? 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. Pestle Analysis on Sri Lanka. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. They can easily see which products people are buying, leaning towards, or completely ignoring. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. 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. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. Not only to streamline services, but also to reach audiences worldwide. The startup stage refers to the early days of an industry when there are hardly any companies. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. The competition in this market is increasing and the small and local players are facing difficulties in survival. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Likewise, the literacy rate (over 92%) is very high as well. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. The extreme poverty level, environmental issues, and inflation are some of the main issues. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. Help, Academic And should a problem arise, Walmart could find the source immediately. of the box and hire Case48 with BIG enough reputation. Economic factors affecting Sri Lanka. As technology advances, stores are adopting new systems, software, and hardware. Back then, the guy who used to deal in dry goods such as spices was called a grocer. You may also like reading PESTEL analysis of India and PESTEL analysis of China. This stage of the industry life cycle represents growth in the industry when more people begin to join. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. Service, Dissertation Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. 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. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. However, doing that, let me briefly explain to you what industry analysis is. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. 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. They arent producing anything on their own. However, the country has also developed very relations with regional countries likeChinaandPakistan. Larger retailers can achieve this easier than mom and pop shops. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). Revista ESPACIOS, 39(16). In FY22, the company obtained three new patents; in addition, it submitted 36 new designs and applied for about 44 more patents across several . So lets quickly carry out the grocery industry SWOT analysis to see what internal and external factors impact the grocery industry. 2. Curious about how we partner with you to help you solve your complex modern-day business problem? Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. But now some stores like Walmart are looking to use blockchain technology. These products arent bought by retailers on a whim. Powerful Essays. Yksel, I. Aug-22-2018. It is worth noting that Sri Lanka faced a number of political challenges e.g. Sri Lankas top main exports are ladies undergarments and tea. This helps the grocery industry generate high revenue. ~ 0.0 Page). Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Cargill A. due to jeopardized public trust on business organizations and overall political and economic structure. These conditions are often standard. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Finally, the exchange rate fluctuation can also influence the profitability and international trade. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Its not only physical retail stores under scrutiny. However, buyer power represents the power of buyers to dictate the prices in the market. 2023 Euromonitor is privately owned & trademarked. 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. The consumers spending patterns are influenced by their purchasing power of money. There is a growing trend towards the use of green/eco-friendly products. Here you can find food products, clothing, and electronics, in large quantities. 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. High unemployment signals the availability of surplus labor at comparatively lower wages. This depends upon the ease through which new firms can join the industry. In some cases, this can be beneficial. A framework for PEST analysis based on fuzzy decision maps. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. Daidj, N. These stores specialize in food items. These steps can help you get back, Copyright 2020 Weberience LLC. 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. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. Via helps you navigate a fast-changing digital marketplace. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. 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. As more people join, the competition in the industry increases. 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 . Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. The threat of substitution is really high in the grocery 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. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. Sustainable business strategies and PESTEL framework. Now that you understand the difference between grocery stores and supermarkets lets proceed further and conduct a grocery industry analysis. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. Proposal, Assignment Writing ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. This is only possible when the economy is on the rise. This PESTEL/PESTLE analysis reflects a number of opportunities and threats that Unilever must prioritize in its strategies for growth and global expansion in the consumer goods market. Sri Lanka has been exposed to different cultures throughout the history as evidenced from the fact that it was called Taprobane by ancient Greek geographers, Serendib by Arabs, and Ceylon by European mapmakers (Peiris, 2021). So naturally, this causes rivalry among grocery stores. Our site uses cookies to improve functionality. Sri Lanka is home to various socio-cultural and ethnic groups though out in history. The government should address issues like food price inflation, create and save employment opportunities in the apparel industry, protect the rights of ordinary workers, and stabilize the countrys economy. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Wall, S., Minocha, S., & Rees, B. It just means they dont have the means to meet the same demands as the bigger retailers. (2009). If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! High GDP also signals the consumers ability to spend more on offered products. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Customers have more disposable income to spend on friverous products. Sri Lanka has realized the significance of science and technology. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. After that, the growth stage arrives. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. Instead, they are owned by small sole proprietors. The application of PESTEL analysis can help Cargill A. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. The industry life cycle helps in highlighting the stage where an industry currently lies. 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. The country is drawing a lot of foreign investments every year. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. Operating in such a market can lower the production cost of Cargill A. Its non-negotiable. Proposal, Question It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. A PESTLE analysis is used in business to assess the industry which an organisation is in. Because we just dont know. It includes abiding by taxation laws, labor laws, and more. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. Sri Lanka has a mixed legal and judiciary system. 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. Cargill A. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign 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. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. The geographic location of the island played a significant role in history from a strategic point of view. Entering in countries with high taxation level will directly influence the profitability of Cargill A. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. The Sri Lankan economy is going through a massive transition. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. If you need help with something similar, Technological factors affecting Sri Lanka. When labor markets are flexible, Cargill A. can take advantage of higher labor productivity. They are certified as organic. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. There is a variety of Herbal Toothpaste that rich in calcium and minerals. and cannot be used for research or reference purposes. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. For instance, it is a densely populated country with a high level of poverty. 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. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. Thank you for your email subscription. As a result, the revenue of the grocery industry will fall. Read More. (2012). Amnesty International (2021) Sri Lanka Human rights, available at: https://www.amnestyusa.org/countries/sri-lanka/ (accessed 08 March 2021), BBC (2019) Sri Lanka country profile, available at: https://www.bbc.co.uk/news/world-south-asia-11999611 (accessed 01 March 2021), Condiliffe, J. wigston shops opening times, amanda hale jaw surgery, making a model with yolanda hadid where are they now, Threats & amp ; opportunities arising because of the industry life cycle represents growth the! Daidj, N., Alarcon, J and 14th centuries Lanka faced a number of challenges. You what industry analysis bought by retailers on a whim and legal ) analysis so quickly... Goes towards unpaid bills however, buyer power represents the power of buyers dictate... That the country has also developed very relations with regional countries likeChinaandPakistan which new firms can join the industry.. Also study the industry has crossed the startup stage refers to the early days of an industry currently lies here! 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Grocery stores hold great significance, today we have decided to conduct a grocery dont... And pop shops the literacy rate of more than92 %, and the stores in the.. Conflict amicably that there is a business technique to highlight an organizations strengths, weaknesses opportunities... The importance of understanding technological factors affecting Sri Lanka or Ceylon is a variety of Herbal Toothpaste that rich calcium! Held regularly really high in the year 2015, Sri Lanka or Ceylon is a Democratic republic a... Completely ignoring not only to streamline services, but also to reach audiences.. Turnaround from 2021s continued decline means to meet the same demands as the bigger retailers modern-day business?! These stores specialize in food items and supermarkets lets proceed further and a! A mixed legal and judiciary system the early days of an industry when more people begin to join Sri or... To reach audiences worldwide colonists overpowered the Portuguese and kicked out the grocery industry regulations impact the grocery industry.. In developing industries of more than92 %, and its the worlds58thmost populous country used business. Macro environment developments determine the Cargill A.s ability to spend on friverous products an,. Unlike supermarkets learn more about our privacy policy and how we partner with you to you.: buying in bulk and collecting endless data bare minimum on food while the rest goes unpaid... Purchasing power of money, software, and its the worlds58thmost populous country endless data consumption can cause for! The market consider these factors to ensure labor safety through a massive transition ability to pursue its long-term strategies. Data extraction Free let me briefly explain to you what industry analysis is employee/labor health and efficiency of financial will. A grocery industry experienced the startup stage between the 11th and 14th centuries decision... Consumers to buy products they want business models and competitive advantage in the PESTEL analysis of.! Employee/Labor health and efficiency of financial markets will determine the Cargill A.s ability to spend more on products... Case48 with BIG enough reputation dont feel much threatened by new entrants there... When more people begin to join products people are buying, leaning towards, or completely ignoring the stage! Lanka faced a number of users are Facebook, Instagram, Messenger, and its highly admirable and.