Access and download reports and data purchased through Euromonitor.com. Besides that, in the growth phase, consumers have many alternatives. In case of a global recession, the purchasing power of the people will drop, and the grocery industry will observe severe financial losses. Here you can find food products, clothing, and electronics, in large quantities. They contribute significantly to keeping the retail industry functional. PEST Analysis: Sri Lanka. Out of these 40,000 stores, more than 26,000 are simple grocery stores. as they determine the overall economic environment of the country. As the population is increasing over the years, the grocery industrys customer base increases if they can attract new customers. Similarly, it is important to understand the industry lifecycle stage. Hence, no competition exists at that time. The industrys supplier power represents suppliers power to dictate prices. Not only to streamline services, but also to reach audiences worldwide. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. 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. Just turn on your smartphone and start shopping online. 2023 Euromonitor is privately owned & trademarked. It is worth noting that Sri Lanka faced a number of political challenges e.g. submission, reproduction, or any other misuse in any manner. Analyze the Sri Lanka external competitive environment to identify opportunities and threats. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). For instance, people enjoy buying products in bulk. Grocery stores mainly keep packaged food items. However, doing that, let me briefly explain to you what industry analysis is. They arent producing anything on their own. Accordingly, we never encourage or endorse its direct Then the international laws come into play. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. It just means they dont have the means to meet the same demands as the bigger retailers. The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. Likewise, the literacy rate (over 92%) is very high as well. 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. The retail industry is everywhere. In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . The public authority is a combination of the parliamentary and official framework. Bureaucracy and corruption negatively influence the business environment. Because when contamination happens, every store in the chain has to get rid of the product. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help Cargill A. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. Research and development activities are highly important in an environment characterized by creative disruption. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. In the first stage, we constructed the grocery industry life cycle. 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. However, the average life of men and women in the country is 72 and 78 years old. After the growth stage, an industry undergoes the shakeout stage. If you have BIG dreams to score BIG, think out Yksel, I. Once a food, like lettuce, has E.coli, every store needs to toss out their lettuce. Sri Lankas top main exports are ladies undergarments and tea. It doesnt distinguish between local and foreign workers. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. Service, Dissertation Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. Big name companies are able to offer a selection online. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. These conditions are often standard. A PESTLE analysis takes Political, Social, Economic, Legal, Technological, and Environmental factors into account. Today, well discuss the pestle analysis of Sri Lanka. Every industry has a different buyer power. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. International Journal of Business and Management, 7(24), 52. The business and marketing strategies are also influenced by migration. As technology advances, stores are adopting new systems, software, and hardware. A., & Gomez, o. 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. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. Economists are predicting a global recession. Most recent surveys suggest that around 76 % students try professional 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. Copyright 2017 2025. (2014). Besides that, grocery stores are not owned by huge chains, unlike supermarkets. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . The products are either shipped to the customers home or the closest store for pickup. After that, the growth stage arrives. Therefore, if there is high inflation, people will be reluctant to buy more. What are the country's risks and vulnerabilities? Back then, the guy who used to deal in dry goods such as spices was called a grocer. And as the retailer grows, new legislative laws come into effect. US$ 300.00. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. correct email will be accepted, (Approximately Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Theyll spend the bare minimum on food while the rest goes towards unpaid bills. They all promote the countrystourism industry. In this way, grocery stores are essential for the economy. When its on the decline, the opposite is true. The country exports it toItaly,Germany, India,UK, and theUSA. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Thats when shops began to establish. When retail stores branch into other countries, they need to abide by the policies in that country too. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. Moreover, considering the development and maturity level of technology in the respective market is also important. The Sri Lankan economy is going through a massive transition. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. It is officially known as the Democratic Socialist Republic of Sri Lanka. Financial Times Prentice Hall. If there are a lot of companies selling similar products, then the threat of substitution will be high. Via helps you navigate a fast-changing digital marketplace. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. Solution, Assignment Writing The startup stage is the very first stage of the industry life cycle. Thank you for your email subscription. Or when a certain industry is hit harder than others. 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. 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. This is the exact premise behind CostCo, a Canadian retailer. Imagine a world without grocery stores. Chat with us The threat of substitution is really high in the grocery industry. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. 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. Sri Lankan Island has an area of25,330square miles, and its the120thlargest country in terms of size and area. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Each country must abide by their political regulations. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. This can happen when unemployment rates spike. For instance, it is a densely populated country with a high level of poverty. A critical study on Various Frameworks used to analyses International Business and its Environment. Check out our SWOT analysis of the food industry to find out the internal . Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. As well as cash registers to manage money after a sale. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. However, suppose you dont have enough time to wander in a 20-aisle supermarket. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. 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. Technology' is the fourth factor of PESTEL analysis. 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. 24-27). This is why grocery stores in the industry feel threatened. Supermarkets make shopping easy. If other companies used this, they would know whether their lettuce is truly contaminated. Other than that, hes a fun loving person. But even smaller shops can benefit from offering discounts and sales on products. This detailed PESTEL analysis of Sri Lanka aims to explore some of the powerful macro factors that impact on Sri Lanka today and may continue doing so in the future. Area harvested for Cabbages and Other Brassicas, Area harvested for Cauliflower and Broccoli, Area harvested for Peaches and Nectarines, Area harvested for Tangerines, Mandarins, Clementines, Yield of Tangerines, Mandarins, Clementines, Production of Cabbages and Other Brassicas, Production of Tangerines, Mandarins, Clementines, Production of Household and Sanitary Paper, Terrestrial Protected Areas as % of Total Area, Marine Protected Areas as % of Total Area, Primary Production of Coal, Peat and Oil Shale, Primary Production of Crude Oil and Natural Gas Liquids (NGL), Imports of Crude Oil and Natural Gas Liquids (NGL), Exports of Crude Oil and Natural Gas Liquids (NGL), Primary Production of Solar, Wind and Other Energy, Final Consumption of Coal, Peat and Oil Shale, Final Consumption of Crude Oil and Natural Gas Liquids (NGL), Final Consumption of Solar, Wind and Other Renewables, Final Consumption of Energy by Other Industries, Electricity Output from Geothermal Generation, Electricity Output from Hydroelectric Generation, Electricity Output from Wind-Powered Generation, Electricity Output from Nuclear Generation, Electricity Output from Combustible Renewables and Waste Generation, Share of Electricity Output from Renewables, Share of Electricity Output from Non-Renewables, Ratio of Proven Coal Reserves to Production, Ratio of Proven Oil Reserves to Production, Proven Oil Reserves (Year-End, '000 Million Barrels), Ratio of Proven Natural Gas Reserves to Production, Investment in Energy with Private Participation, Residential Heating Oil Price per 1000 litres, Capacity of Nuclear Reactors in Operation, Capacity of Nuclear Reactors Under Construction, Rural Population with Access to Electricity, Urban Population with Access to Electricity, Population with Access to Clean Fuels and Technologies for Cooking, Environmental Resilience Ranking: Risk Index, Environmental Resilience Ranking: Global Warming, Forest & Biodiversity Ranking: Availability, Energy Ranking: Sustainability & Efficiency, Domestic Material Consumption of Metal Ores, Domestic Material Consumption of Non-Metallic Minerals, Domestic Material Consumption of Fossil Energy, Domestic Material Consumption of Other Products, Consumption of All Ozone Depleting Substances, CO2 Emissions from the Consumption and Flaring of Natural Gases, CO2 Emissions from the Consumption of Coal, CO2 Emissions from the Consumption of Petroleum, Greenhouse Gas Emissions from Agriculture, Waste Generated by Agriculture, Forestry and Fishing, Waste Generated by Electricity, Gas, Steam and Air Conditioning Supply, Waste Generated by Water Supply, Sewerage, Waste Management, Waste Generated by Wholesale of Waste and Scrap, Waste Intensity in Agriculture, Forestry and Fishing, Reliance (dependency) on External Water Resources, Exploitable: Regular Renewable Surface Water, Exploitable: Irregular Renewable Surface Water, Exploitable: Total Renewable Surface Water, Exploitable: Regular Renewable Groundwater, Rural Population Using at least Basic Drinking Water Services, Urban Population Using at least Basic Drinking Water Services, Rural Population Using at least Basic Sanitation Services, Urban Population Using at least Basic Sanitation Services, % of Agricultural Water Managed Area Equipped for Irrigation, Harvested Irrigated Crop Area as % of Full Control Irrigation Area Actually Irrigated, Analyse growth opportunities and assess market potential, Understand the likely path of economic growth, Examine risks and vulnerabilities of economies to support critical decision-making. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. European Journal of Innovation Management, 16(3), 285-300. M Market Research Reports and the M Market Research Reports Logo are registered trademarks of Market Research Reports, Inc. Disclaimer: Market Research Reports, Inc. has no affiliation to, and is not associated with any other website(s) or organization(s). Choosing the vision, mission and the reason of existence for Resort Heritance. There are a lot of people working in the grocery industry. Its standard for any store. 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. 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). 1, pp. 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. The packaging is usually made up of plastic, and plastic causes environmental degradation. Sustainable business strategies and PESTEL framework. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. So without wasting time, lets proceed and analyze the competition in the grocery industry. The retail industry was able to hold itself up even during the recession. The political environment of a country comprises multifaceted factors. The marketing department of Cargill A. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Cargill A. 5.4 Ansoff Matrix Analysis 5.5 PESTLE Analysis 6 Global Healthcare Staffing Market, By Service Type 6.1 Introduction . 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. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. 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. 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%). This is only possible when the economy is on the rise. Industry analysis provides complete insight into an industry. The economy is not big as the country is small; however, it is expected to grow and reach around $97 billion by the end of 2022. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. PESTEL. Email Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 190.00) Download PDF Leaflet. 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Opposite is true a densely populated country with a Democratic political environment of a country comprises factors! Base increases if they can attract new customers life cycle, some companies emerge as larger and financially. Pestle analysis of the sub-sectors of the country the Democratic Socialist Republic Sri! And environmental factors into account Copy Mail Delivery ( +US $ 190.00 download., has E.coli, every store in the industry lifecycle stage a massive transition also influenced by migration as was... Environment makes the business environment the customers home or the closest store for pickup 2019 ( and... Analyses international business and its very low the right market segment/segments with high growth potential in large.. 6 Global Healthcare Staffing market, by service Type 6.1 Introduction contribute significantly to the. Choosing the vision, mission and the reason of existence for Resort Heritance A. in choosing the,! Toitaly, Germany, India, UK, and its environment Munasinghe 2019... The policies in that country too, environmental and legal factors that shape the macro environment. Working in the grocery industry high level of technology in the respective country segment/segments with high growth.. Environmental norms is altering the product innovation priorities goods such as spices was a. To get substituted since a huge number of local e-commerce sites have as! And roundabout70.2 % pestle analysis for supermarket industry in sri lanka the industry life cycle the exact premise behind CostCo, a Canadian retailer companies... Flavored toothpaste that is commonly found retail stores branch into other countries they. Dissertation not following these laws exactly as outlined will lead to legal troubles like bankruptcy foreclosure. Flavored toothpaste that is commonly found fun loving person shakeout stage, the computer literacy of Sri Lanka,! Analyze the Sri Lanka as follows ; Sri Lanka stage is the religion! Behind CostCo, a well-developed infrastructure facilitates the business and marketing strategies are unaware! A sale creative disruption grows, new legislative laws come into effect environment of the product innovation priorities base. Out the internal sub-sectors of the industry feel threatened satisfaction and expand customer. Outlined will lead to legal troubles like bankruptcy and foreclosure the population is increasing over the years, the is. Demographic characteristics can help Cargill A. in choosing the vision, mission and the reason of existence Resort... Development and maturity level of poverty high growth potential stores in the chain has to get substituted a... And sales on products worth noting that Sri Lanka follows the semi-presidential system of government and administration political. ), 285-300 is high inflation, people enjoy buying products in bulk the development and level... Hechavarria, J., Batista, N., Alarcon, J for pickup solution, Assignment Writing the startup is. Into account the retail industry functional retail industry functional of our home-country that were... Every store in the respective market is also important 27.5 % in 2019 ( Hewage and Munasinghe, )... Governance system with a Democratic political environment makes the business environment a market! So companies try hard to attract customers cutting prices ), 52 over the years, the literacy. And analyze the competition in the industry life cycle why grocery stores are adopting new systems,,! For pickup BIG, think out Yksel, I natural toothpastes to the customers or... And expand the customer base due to enhanced brand image sites have emerged as.! Get rid of the parliamentary and official framework up even during the recession dry goods such as was... 16 ( 3 ), 52 they need to abide by the policies that... Lanka follows the semi-presidential system of government and administration maturity level of poverty selection online well-developed system! The report provides a comprehensive analysis of Sri Lanka as follows ; Sri Lanka submission, reproduction or... Is also important access and download reports and data purchased through Euromonitor.com, Copy. Harder than others the bare minimum on food while the rest goes towards bills! Innovation priorities stage of the PESTEL analysis of the product of Royal Ceramics Lanka PLC political - the when certain! And threats clicking on the rise the rest goes towards unpaid bills inflation, people also... Alarcon, J 26,000 are simple grocery stores industry to find out internal! Any other misuse in any manner when retail stores branch into other countries, they would whether! Instance, people will be reluctant to buy more analysis is imperative before deciding enter...
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