Approximately more than 21 million people are populating Sri Lanka. The retail industry was able to hold itself up even during the recession. Entering in markets where technological advancement has not reached the maturity means Cargill A. can increase the market share by focusing on emerging technological innovations. After that, it reaches the maturity stage, and then finally, it goes through the decline stage. Heres what you need to know. Economic factors: Nearly $30 trillion dollars in a couple more years. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). 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). Thank you for your email subscription. Mobile adoption is very strong, but innovation potential is lacking. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. The competition in this market is increasing and the small and local players are facing difficulties in survival. P. - John Keells are known as the influential people. European Journal of Innovation Management, 16(3), 285-300. The retail industry has greatly benefited because of the internet. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Hence, the sales of grocery stores also increase. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. Hence their products are identical. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affe . The consumers spending patterns are influenced by their purchasing power of money. 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. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. Thats when pre-existing grocery stores started to force the new and not financially strong stores to leave the market so that they could enjoy greater market share. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. IEEE. 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. This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis forSri Lanka. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. Literally. A stronger economy allows consumers to buy products they want. 2. As does data and copyright laws. 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. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. They use market research to identify buying trends and shifts in consumer behavior. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. Rather than spending weeks trying to locate where the contamination started. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. He is a lecturer in Management and Marketing. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. 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. Accordingly, we never encourage or endorse its direct It would allow farmers and manufacturers to input information about food products in real-time. The extreme poverty level, environmental issues, and inflation are some of the main issues. Access and download reports and data purchased through Euromonitor.com. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Moreover, there are no substitution costs. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. 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). The grocery industry hit its maturity stage in the early 1990s. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. So without wasting time, lets proceed and analyze the competition in the grocery industry. Consumer preferences are the main social factors affecting the retail industry. Wall, S., Minocha, S., & Rees, B. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. These regulations impact the economy, consumer buying habits, and international trade laws. PEST Analysis: Sri Lanka. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. Strategy planning process often requires five steps -. This article is only an example The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. Cargill A. must consider these factors to ensure compliance with consumer protection laws. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. Read More. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. This report series allows you to understand the macro-economic environment as a basis for strategic planning. This stage of the industry life cycle represents growth in the industry when more people begin to join. 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. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. 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. Cargill A. need to study data protection regulations to protect the customer data. Instead, they are owned by small sole proprietors. This helps the grocery industry generate high revenue. Proposal, Question Social factors: Buying in bulk and collecting endless data. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . Out of these 40,000 stores, more than 26,000 are simple grocery stores. They all promote the countrystourism industry. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . However, this transformation is helping the country to attract foreign investors. This is set by the government. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. Total Sri Lankan oral care market share is approximately Rs. Developing strategic business models and competitive advantage in the digital sector. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. 8.4 Bn. Whether their food is actually contaminated or not. The business practices of the Cargill A. are influenced by the prevailing economic structure. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. The environmental standards, laws and regulations vary across different markets. Likewise, some shops in other countries have to pay a tax for offering fatty foods. Each company offers retail products online, to be sold and shipped. The geographic location of the island played a significant role in history from a strategic point of view. Then, finally, we carried out an environmental analysis of the grocery industry, We hope you would have enjoyed reading this article and are now completely aware of the grocery industry. US$ 300.00. Buyer power is similar to supplier power. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. The Sri Lankan economy is going through a massive . Its always there, even when buyers dont have the funds to buy their products. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. civil wars, political power struggle, and suppressing dissent and activism in the past. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. In fact, Sri Lanka has received the highest investment from China. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. You dont have to walk down the street to your favorite shop anymore. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. Today, new products are developed quickly, and supply chain partners have also gained more power. Just turn on your smartphone and start shopping online. Understanding the impact of technology on firms business models. Out of these 40,000 stores, more than 26,000 are simple grocery stores. (Ed.). 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. But if the countrys political parties are fickle, it can easily turn into a problem. The power distance within any society shows the acceptance of hierarchy and income inequality. As a result, the stronger companies acquire the smaller companies or force them out of the industry. With the help of technology, retail is one of those industries that can survive post-economic destruction. What are the best sectors for investment? Here you can find food products, clothing, and electronics, in large quantities. Similarly, it is important to understand the industry lifecycle stage. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. 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. Each country must abide by their political regulations. Service, Dissertation High unemployment signals the availability of surplus labor at comparatively lower wages. Its fast and easy to use. Herbal Toothpaste is made of natural ingredients. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. All consumers love a good deal. Via helps you navigate a fast-changing digital marketplace. Its important to understand the laws long before the store is open for business. 1. A., & Gomez, o. However, the average life of men and women in the country is 72 and 78 years old. Imagine a world without grocery stores. In this way, grocery stores are essential for the economy. Sri Lankas top main exports are ladies undergarments and tea. There is a variety of Herbal Toothpaste that rich in calcium and minerals. Aug-22-2018. The grocery industry holds great significance since it provides groceries and employment to millions of people. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. Pestle Analysis on Sri Lanka. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. Economic factors affecting Sri Lanka. 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. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. correct email will be accepted, (Approximately Economic. Most companies have a business website. The stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. Tea and womens undergarments are the two top exports of Sri Lanka that mostly go to countries such as the USA, the UK, India, Germany, and Italy. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Instead, they are owned by pestle analysis for supermarket industry in sri lanka sole proprietors live in rural areas & # x27 ; of. Pay a tax for offering fatty foods this case, suppliers have power..., consumer buying habits, and suppressing dissent and activism in the country is 72 and 78 years old care! 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