Curious about how we partner with you to help you solve your complex modern-day business problem? In this way, grocery stores are essential for the economy. It has very close cultural interactions with India as well. Then, they shape their offerings based on this data. The retail industry is everywhere. 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. 11.12 Sri Lanka 11.13 Thailand However, the country has also developed very relations with regional countries likeChinaandPakistan. Retail stores use a variety of technology everyday. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. The country exports it toItaly,Germany, India,UK, and theUSA. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Its going to analyze the macro-environmental factors impacting the worlds leading developing country. The shakeout stage is followed by the maturity stage. 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 Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. As does data and copyright laws. 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. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. The business practices of the Cargill A. are influenced by the prevailing economic structure. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. 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). Hence, no competition exists at that time. Hence all the suppliers have identical products. They are certified as organic. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Hence, Cargill A. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Hou, J., Lu, Q., & Han, Y. However, Sri Lanka also faces some environment challenges e.g. Particularly, Chinese investment has been massive. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 The advent of social media and e-commerce has encouraged online shopping behavior among customers. In the first stage, we constructed the grocery industry life cycle. Grocery stores and supermarkets are interchangeable terms. These steps can help you get back, Copyright 2020 Weberience LLC. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. 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 Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. Warning! To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. They contribute significantly to keeping the retail industry functional. This repels customers. as they determine the overall economic environment of the country. 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. 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. Surely, it needs to work on political stability, and reforms. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. 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. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. 2023 Euromonitor is privately owned & trademarked. British colonists arrived and colonized the island from 1815-1948. Integrity, Essay Writing Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). PESTEL. Political factors: Anti-trust issues. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . Analyze the Resort Heritance external competitive environment to identify opportunities and threats. Sri Lanka is home to various socio-cultural and ethnic groups though out in history. Mobile adoption is very strong, but innovation potential is lacking. The packaging is usually made up of plastic, and plastic causes environmental degradation. As more people join, the competition in the industry increases. These regulations impact the economy, consumer buying habits, and international trade laws. The sales of grocery stores depend upon inflation directly. 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. Thats why the government is taking steps to make the country digital in various industries. 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. Thats when shops began to establish. The maturity stage leads to the decline stage. This stage of the industry life cycle represents growth in the industry when more people begin to join. Other small name companies cant compete on the same scale. All Rights Reserved, Economic factors: Nearly $30 trillion dollars in a couple more years, Social factors: Buying in bulk and collecting endless data, Technological factors: A digital catalogue for easy browsing, Environmental factors: Contamination and blockchain technology, A stronger economy allows consumers to buy products they want, more disposable income to spend on friverous products, main social factors affecting the retail industry, They use market research to identify buying trends, about environmental issues inside of the stores, 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. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Because we just dont know. 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. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. Currently, the economy worldwide is in a great spot for retail industries to expand. It also means more investors are becoming interested in the profitability offered by retail stores. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. This negative current account balance indicates the Sri Lanka is net borrower from the whole world. New technologies such as eCommerce have emerged as technological developments have taken place. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. Access and download reports and data purchased through Euromonitor.com. Pestle Analysis on Sri Lanka. What are the best sectors for investment? As a result, the revenue of the grocery industry will fall. Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. Developing strategic business models and competitive advantage in the digital sector. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. 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. inspiration, guidance, and understanding. Customers have more disposable income to spend on friverous products. The high fluctuation on local currency can be a cause of serious concern for Cargill A. But now some stores like Walmart are looking to use blockchain technology. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. correct email will be accepted, (Approximately Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. Our site uses cookies to improve functionality. Synopsis. At this point, the industrys growth rate decreases since it is already operating at its full potential. 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. With the help of this tool, companies decide if they should enter an industry. They all promote the countrystourism industry. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Demography. (2008, December). Solution, Assignment Writing A detailed understanding of the economic environment can help Cargill A. estimate the growth trajectory of industry and organization. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. This factor of Porters five forces model identifies how much competition exists between the rivals within an industry. Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. Help, Academic and cannot be used for research or reference purposes. Unemployment is particularly high for women and youth. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. However, the average life of men and women in the country is 72 and 78 years old. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. There are almost 40,000 stores in the US that sell groceries. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Therefore, governments in some countries might take action against stores for keeping items packed in plastic packaging. As Cargill A. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. Exploring strategy. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. In some cases, this can be beneficial. This is the exact premise behind CostCo, a Canadian retailer. 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. And should a problem arise, Walmart could find the source immediately. Then the international laws come into play. At this stage, the industry is booming and has reached its peak. Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. Legal is the sixth factor of PESTEL analysis. As the population is increasing over the years, the grocery industrys customer base increases if they can attract new customers. However, suppose you dont have enough time to wander in a 20-aisle supermarket. It is worth noting that Sri Lanka faced a number of political challenges e.g. Many countries have placed strict norms to protect their urban areas through effective waste management. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. Via helps you navigate a fast-changing digital marketplace. 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. For instance, it is a densely populated country with a high level of poverty. For instance, smaller stores are making the shift to computers or iPads at the register. International business. (2012). Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. If you have BIG dreams to score BIG, think out The international presence of Cargill A. require the organization to consider these differences to avoid undesired circumstances carefully. However, now people prefer groceries from supermarkets. Amazon and Walmart are going head-to-head. Over the years, the trends have changed. 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. Moreover, considering the development and maturity level of technology in the respective market is also important. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. Porters five forces model helps analyze the competition level in an industry. 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