Once a food, like lettuce, has E.coli, every store needs to toss out their lettuce. correct email will be accepted, (Approximately Posted by Zander Henry on These steps can help you get back, Copyright 2020 Weberience LLC. In some cases, this can be beneficial. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). Political factors: Anti-trust issues. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. What are the best sectors for investment? Check your email But now some stores like Walmart are looking to use blockchain technology. It pressurizes the Cargill A. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. - If the company block logistics economic crisis then . Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. 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 extreme poverty level, environmental issues, and inflation are some of the main issues. This is the third major source of revenue generation to the economy. Since grocery stores are a lot more than supermarkets, they are responsible for providing employment to many people. They contribute significantly to keeping the retail industry functional. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. 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. If other companies used this, they would know whether their lettuce is truly contaminated. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. Other small name companies cant compete on the same scale. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. 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. The sales of grocery stores depend upon inflation directly. Culture is considered an important variable by international marketing managers. Revista ESPACIOS, 39(16). The Sri Lankan economy is going through a massive transition. 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. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). If not, select "Manage Preferences" to learn more about managing your cookie preferences. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. In that case, you will prefer to go to a grocery store to buy the essential food items so you can prepare dinner as soon as possible. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. However, Indian and Sri Lankan cultures are almost the same. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. 5.4 Ansoff Matrix Analysis 5.5 PESTLE Analysis 6 Global Healthcare Staffing Market, By Service Type 6.1 Introduction . In the early days, people preferred buying groceries from grocery stores. (2008, December). Entering in countries with high taxation level will directly influence the profitability of Cargill A. 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. Likewise, the literacy rate (over 92%) is very high as well. Each country must abide by their political regulations. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. This is costly for the companies. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. 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. ~ 0.0 Page). Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. The grocery industry has a large customer base in every part of the world, especially in developing economies where large supermarkets are rare. We also cant forget about environmental issues inside of the stores either. Sri Lanka SWOT Analysis Market Research Report: Oct 12 2017: 27: USD 100.00: Sri Lanka Risk Analysis Market Research Report: Oct 12 2017: 28: USD 100.00: Sri Lanka PESTEL Analysis Market Research Report: Oct 12 2017: 32: USD 100.00 Finally, the exchange rate fluctuation can also influence the profitability and international trade. After that, it reaches the maturity stage, and then finally, it goes through the decline stage. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . GSTF International Journal on Computing, 1(1), 73-80. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. The consumers spending patterns are influenced by their purchasing power of money. There are a lot of people working in the grocery industry. Sri Lanka has realized the significance of science and technology. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. The products are either shipped to the customers home or the closest store for pickup. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. The only thing left for the company to do about these changes is abide by them. The demand and supply of labor determine the wage rates and supply of skilled workforce. US$ 300.00. Out of these 40,000 stores, more than 26,000 are simple grocery stores. Then, they shape their offerings based on this data. If you need help with something similar, Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. 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. The supplier power in the grocery industry is very low. High unemployment signals the availability of surplus labor at comparatively lower wages. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. Sri Lankas top main exports are ladies undergarments and tea. Grocery stores and supermarkets are interchangeable terms. 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. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. Unemployment is particularly high for women and youth. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. Use of social media has become common in a modern business environment. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Technological factors affecting Sri Lanka. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. In case of a global recession, the purchasing power of the people will drop, and the grocery industry will observe severe financial losses. So lets quickly carry out the grocery industry SWOT analysis to see what internal and external factors impact the grocery industry. Exploring strategy. Cargill A. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. 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. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. We offer syndicated research reports (like country analysis, SWOT analysis, competitive intelligence, industry reports, company reports and market analysis & trends reports) and custom market research from our website MarketResearchReports.com only. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Lets discuss what external factors impact the grocery industry. These products arent bought by retailers on a whim. Scope of Sri Lanka - PESTEL Analysis Report. Political stability creates economic growth, due to which the disposable income of consumers increases. 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. Most recent surveys suggest that around 76 % students try professional As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. The geographic location of the island played a significant role in history from a strategic point of view. 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. However, buyer power represents the power of buyers to dictate the prices in the market. Thank you for your email subscription. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. Every industry has a different buyer power. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. This report series allows you to understand the macro-economic environment as a basis for strategic planning. After that, the growth stage arrives. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). as they determine the overall economic environment of the country. PEST Analysis: Sri Lanka. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. 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. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. As well as cash registers to manage money after a sale. Each society has distinctive norms and values that play an important role in shaping consumer behavior. International Journal of Business and Management, 7(24), 52. Its not only physical retail stores under scrutiny. Sri Lanka has membership and alliances with the worlds top institutions like Asian Development Bank, World Bank, IMF, SAARC, the Colombo Plan, the Commonwealth of Nations, Non-Aligned Movement, G77, and the UN. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. Many countries have placed strict norms to protect their urban areas through effective waste management. It is important for Cargill A. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. The country needs a lot of reforms like equal treatment of minorities, human rights, communal harmony, and a stable political environment in order to compete with the world. Herbal Toothpaste is made of natural ingredients. You dont have to walk down the street to your favorite shop anymore. P. - John Keells are known as the influential people. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. Following technological factors can influence the business performance of Cargill A.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Powerful Essays. These stores specialize in food items. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). Its basically a digital catalogue for their products. Strategy planning process often requires five steps -. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). 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. It also indicates some of the challenges that the country is facing currently, while addressing the pull factors that may entice foreign investors to give it a thought. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. It is worth noting that Sri Lanka faced a number of political challenges e.g. Grnig, R., & Morschett, D. (2017). Besides that, in the growth phase, consumers have many alternatives. (2012). However, now people prefer groceries from supermarkets. Proposal, Question 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). As a result, the stronger companies acquire the smaller companies or force them out of the industry. Like a point of sales system. However, they are quite different. More retail shops are offering food products. 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). However, Sri Lanka also faces some environment challenges e.g. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. Surely, it needs to work on political stability, and reforms. Follow this link to learn more about our cookie policy and how we use cookies. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. USD 300. The threat of substitution is really high in the grocery industry. Some examples of environmental factors that Cargill A. need to consider are given below. Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. Its a never-ending process. A., & Gomez, o. But even smaller shops can benefit from offering discounts and sales on products. Hou, J., Lu, Q., & Han, Y. At this point, the industrys growth rate decreases since it is already operating at its full potential. Curious about how we partner with you to help you solve your complex modern-day business problem? 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. The maturity stage leads to the decline stage. This can happen when unemployment rates spike. In this way, grocery stores are essential for the economy. 8.4 Bn. Help, Academic Then the international laws come into play. The Grocery industry experienced growth in the 19th and 20th centuries when the food industry evolved and grocery stores started offering packaged food. When its on the decline, the opposite is true. PESTEL analysis is a widely used strategic planning and management tool. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. 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. So I did it on Sri Lanka. All consumers love a good deal. Or when a certain industry is hit harder than others. Certainly, rapid human development is having its toll on the environment. Particularly, Chinese investment has been massive. 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. Rather than spending weeks trying to locate where the contamination started. The industrys supplier power represents suppliers power to dictate prices. Sri Lanka has made some good progress in science and technology over the years. IGI Global. Cargill A. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. Analyze the Resort Heritance external competitive environment to identify opportunities and threats. These conditions are often standard. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. Then, an industry goes through the shakeout stage. . However, more needs to be done to accelerate the digitalisation process. When retail stores branch into other countries, they need to abide by the policies in that country too. At this stage, the industry is booming and has reached its peak. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. Integrity, Essay Writing 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). Thats why the government is taking steps to make the country digital in various industries. Technological trends can be used to start the creative social media campaigns for developing online brand communities. inspiration, guidance, and understanding. 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. 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. As a result, the revenue of the grocery industry will fall. This is because grocery stores mainly buy food and beverage products from wholesalers. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. There are multiple stages in the life cycle of any industry. In fact, Sri Lanka has received the highest investment from China. Its important to understand the laws long before the store is open for business. 1,143 Trillion . Cargill A. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Cargill A. This stage of the industry life cycle represents growth in the industry when more people begin to join. PESTEL. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Cargill A. 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.