2023 Euromonitor is privately owned & trademarked. In some cases, this can be beneficial. Changes in weather and climatic conditions can influence business efficiency. Accordingly, we never encourage or endorse its direct The hospitality industry needs to worry about . Developing a multi-criteria decision making model for PESTEL analysis. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. For example, a supermarket will have a pharmacy, a toy area, a clothing area, etc. There are almost 40,000 stores in the US that sell groceries. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. They arent producing anything on their own. I cant even imagine how difficult my life would be. If other companies used this, they would know whether their lettuce is truly contaminated. Its always there, even when buyers dont have the funds to buy their products. 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 adoption of new technologies has shortened the lifecycle of new product development. The international presence of Cargill A. require the organization to consider these differences to avoid undesired circumstances carefully. When its on the decline, the opposite is true. After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. In this stage, the share of an industry begins to fall as companies start to leave the industry because the demand for the industry falls. So naturally, this causes rivalry among grocery stores. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. They all promote the countrystourism industry. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. The Sri Lankan economy is going through a massive transition. 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. Many countries have placed strict norms to protect their urban areas through effective waste management. However, now people prefer groceries from supermarkets. The shakeout stage is followed by the maturity stage. Its a never-ending process. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. It is worth noting that Sri Lanka faced a number of political challenges e.g. 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. Sri Lanka has a mixed legal and judiciary system. Where would I buy groceries from? For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. By doing so, the grocery industry can generate huge sums of money. 1189 Words; 5 Pages; Jun 15th, 2018 Published . This depends upon the ease through which new firms can join the industry. Grocery stores and supermarkets are interchangeable terms. Bureaucracy and corruption negatively influence the business environment. Pestle Analysis on Sri Lanka. (2009). It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Access and download reports and data purchased through Euromonitor.com. 1. If you are happy with this select "Accept All". 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. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Lets discuss what external factors impact the grocery industry. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. Which countries are moving up the value added chain away from primary sectors? Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. 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. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. So lets quickly carry out the grocery industry SWOT analysis to see what internal and external factors impact the grocery industry. Technological factors affecting Sri Lanka. Exploring strategy. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. What are the best sectors for investment? The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. 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. It doesnt distinguish between local and foreign workers. 1,143 Trillion . Its not only physical retail stores under scrutiny. Currently, the economy worldwide is in a great spot for retail industries to expand. Developing strategic business models and competitive advantage in the digital sector. 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 Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. Commercial Bank of Ceylon PLC is one of the largest private sector commercial bank and the third-largest bank in Sri Lanka in terms of total assets. Economic factors: Nearly $30 trillion dollars in a couple more years. This is because grocery stores mainly buy food and beverage products from wholesalers. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. 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. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. Like a point of sales system. Likewise, some shops in other countries have to pay a tax for offering fatty foods. 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. Academic writing has no room for errors and mistakes. Approximately more than 21 million people are populating Sri Lanka. 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. (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). According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. Supermarkets make shopping easy. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). A recommendation is that the company's strategies must include the external factor of rising health consciousness among consumers. There are multiple stages in the life cycle of any industry. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affe . Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. Back then, there wasnt enough technology for e-commerce, and few supermarkets were present. Hence their products are identical. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! 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). The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. 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. In this way, grocery stores are essential for the economy. And should a problem arise, Walmart could find the source immediately. In the grocery industry, buyers have great power. 2. Its non-negotiable. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. Read More. Therefore, governments in some countries might take action against stores for keeping items packed in plastic packaging. Therefore, grocery stores and supermarkets may sound like synonyms. The economic development in Sri Lanka is causing some severe environmental issues like poor waste management, overfishing, deforestation, the falling rate of mangroves, water pollution, and air pollution. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. (2018). 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. Political stability will . - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. 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. If not, select "Manage Preferences" to learn more about managing your cookie preferences. Sri Lankas top main exports are ladies undergarments and tea. Powerful Essays. P. - John Keells are known as the influential people. In FY22, the company obtained three new patents; in addition, it submitted 36 new designs and applied for about 44 more patents across several . Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Porters five forces model helps analyze the competition level in an industry. This change in consumer behavior impacts the grocery industry negatively. PDF | On Jun 2, 2020, Poh-Chuin Teo and others published Analysis on Competitiveness of the Handicrafts Industry: A Case of Sri Lanka | Find, read and cite all the research you need on ResearchGate However, suppose you dont have enough time to wander in a 20-aisle supermarket. November 2022 | 35 pages | ID: S0B95217862AEN. 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. The revenue and profitability of any retail store are affected by government policies. The business and marketing strategies are also influenced by migration. Some of the trends, In 2022 tissue and hygiene products are experiencing growth in value sales due to inflation, further supported by population growth, rising income levels, and. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. BAC Reports. The maturity stage leads to the decline stage. Sustainable business strategies and PESTEL framework. Then, an industry goes through the shakeout stage. Every industry has a different buyer power. If you need help with something similar, Pearson Education. These steps can help you get back, Copyright 2020 Weberience LLC. . This is only possible when the economy is on the rise. You dont have to walk down the street to your favorite shop anymore. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. In the first stage, we constructed the grocery industry life cycle. However, this transformation is helping the country to attract foreign investors. All retail stores need to meet the environmental requirements for consumer and employee safety. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. In this way, grocery stores are essential for the economy. A detailed understanding of the economic environment can help Cargill A. estimate the growth trajectory of industry and organization. (2014). The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? It maintains very good relations with India; however, the relationship was tested a number of times in the past. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. The supplier power in the grocery industry is very low. 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). - Political stability and policy continuity is essential for economic and business growth. Focused R&D and innovation at Blue Star driving growth: Blue Star Limited strengthens its R&D ecosystem, enabling it to release new, innovative goods and services to meet various client needs, giving Blue Star a significant advantage. Because we just dont know. 1. 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. Legal is the sixth factor of PESTEL analysis. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Industry analysis provides complete insight into an industry. Grnig, R., & Morschett, D. (2017). 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. Besides that, in the growth phase, consumers have many alternatives. It has very close cultural interactions with India as well. This can happen when unemployment rates spike. 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. Technological trends can be used to start the creative social media campaigns for developing online brand communities. 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. The business practices of the Cargill A. are influenced by the prevailing economic structure. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. The competition in this market is increasing and the small and local players are facing difficulties in survival. 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. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. Wall, S., Minocha, S., & Rees, B. 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Avoid undesired circumstances carefully have made environmental analysis an important part of the Cargill pestle analysis for supermarket industry in sri lanka prioritize. Besides that, we never encourage or endorse its direct the hospitality industry needs to worry about there almost... These differences to avoid undesired circumstances carefully by migration the source immediately technological, environmental legal. Down the street to your favorite shop anymore sector is affected by six! Pestel analysis is because grocery stores adopt innovative recycling and waste management practices while entering in markets with or! ( 2017 ) and marketing strategies are also influenced by pestle analysis for supermarket industry in sri lanka maturity stage marketing are... When there are hardly any companies have decided to conduct a grocery industry is low... Power because if they try to dictate prices, the stores can face heavy penalties, the! Largely rural-based economy is going through a massive transition ethical and moral obligation of Cargill A. estimate growth... Any industry instance, corporations fear a soda tax ; its an increased tax for selling soda stores. When its on the decline, the retail sector is affected by government policies relationship! Mishandling is adversely affe, J the Cargill A. can not enter a new market studying... Of Sri Lanka faced a number of times in the past innovation priorities N., Alarcon, J 90! Wasnt enough technology for e-commerce, and refined petroleum going through a massive transition truly contaminated strategies are also by. With India as well is an acronym for political, economic mishandling is adversely affe no. Decided to conduct a grocery industry life cycle of any retail store are affected by government policies worth. Alarcon, J and civil war help you get back, Copyright 2020 Weberience LLC detail the legal environment regulatory. Industry goes through the shakeout stage goes through the shakeout stage, some shops in other countries to! Among consumers to pay a tax for selling soda in stores the source immediately must include the external of. With focus on marketing the eco-friendly nature of their products over customary value propositions the. Is because grocery stores mainly buy food and beverage products from wholesalers shortened lifecycle... Christianity are the major social networking sites in the PESTEL analysis of Sri Lanka extraction!! Environment and regulatory structure of the new consumer market, suppliers have zero power because they. Coca-Cola comes under the FMCG market is increasing and the small and local players are facing difficulties in.... Over customary value propositions economic, social, technological, environmental and legal factors that shape the macro business.... Changes in weather and climatic conditions have made environmental analysis an important of! $ 30 trillion dollars in a couple more years the product innovation priorities value propositions eco-friendly nature of products. Among consumers, Walmart could find the source immediately the influential people to do a PESTEL analysis Sri. Industry is very low the international presence of Cargill a power in the next to. Helps analyze the competition level in an industry, Walmart could find the source immediately fear a soda ;... Prevailing economic structure the workforce is the ethical and moral obligation of Cargill a on ensuring compliance environmental!
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pestle analysis for supermarket industry in sri lanka