You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. Cargill A. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. The revenue and profitability of any retail store are affected by government policies. Likewise, the literacy rate (over 92%) is very high as well. 1. Similarly, it is important to understand the industry lifecycle stage. The Sri Lankan economy is going through a massive transition. The hospitality industry needs to worry about . There are multiple stages in the life cycle of any industry. We hope the article PESTEL analysis of Sri Lanka has been useful. 8.4 Bn. of the box and hire Case48 with BIG enough reputation. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. 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. Particularly, Chinese investment has been massive. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Lets discuss what external factors impact the grocery industry. 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. Total asset base amounts to Rs. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. However, doing that, let me briefly explain to you what industry analysis is. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . This helps the grocery industry generate high revenue. Its fast and easy to use. In case of a global recession, the purchasing power of the people will drop, and the grocery industry will observe severe financial losses. This factor of Porters five forces model identifies how much competition exists between the rivals within an industry. It also means more investors are becoming interested in the profitability offered by retail stores. Strategy. There are almost 40,000 stores in the US that sell groceries. Country Profiles examine the economic and political trends in 210 countries and associated regions, serving as a one-stop-shop for data and analysis on the economy, political landscape and the business environment. It doesnt distinguish between local and foreign workers. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affe . 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 a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Hence, Cargill A. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. - Political stability and policy continuity is essential for economic and business growth. New technologies such as eCommerce have emerged as technological developments have taken place. Thats when shops began to establish. The country has multiple democratic parties. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. The grocery industry experienced the shakeout stage in the 1970s and 80s. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. They can easily see which products people are buying, leaning towards, or completely ignoring. You may also like reading PESTEL analysis of India and PESTEL analysis of China. 2. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Likewise, some shops in other countries have to pay a tax for offering fatty foods. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. 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. However, the average life of men and women in the country is 72 and 78 years old. Changes in weather and climatic conditions can influence business efficiency. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . It is officially known as the Democratic Socialist Republic of Sri Lanka. Demography. The demand and supply of labor determine the wage rates and supply of skilled workforce. Approximately more than21million people are populating Sri Lanka. Pestle Analysis on Sri Lanka. The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). Check your email All retail stores need to meet the environmental requirements for consumer and employee safety. 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. Developing strategic business models and competitive advantage in the digital sector. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. Then, an industry goes through the shakeout stage. Issa, T., Chang, V., & Issa, T. (2010). 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. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. After that, the growth stage arrives. P. - John Keells are known as the influential people. However, suppose you dont have enough time to wander in a 20-aisle supermarket. In fact, Sri Lanka has received the highest investment from China. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. This is the third major source of revenue generation to the economy. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. 5 Market Analysis 5.1 Regulatory Scenario . However, Indian and Sri Lankan cultures are almost the same. Its non-negotiable. Subscribe now to get your discount coupon *Only When retail stores branch into other countries, they need to abide by the policies in that country too. Social factors: Buying in bulk and collecting endless data. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. Retail stores use a variety of technology everyday. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. However, the average life of men and women in the country is 72 and 78 years old. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. When its on the decline, the opposite is true. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. It also means having to abide by more economic and political factors. This is because grocery stores mainly buy food and beverage products from wholesalers. 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. These memberships attest to its importance in the regional socio-political affairs and beyond. This is set by the government. The grocery industry has a large customer base in every part of the world, especially in developing economies where large supermarkets are rare. Ansoff Matrix in McDonalds (McDonalds Growth Strategy), https://www.amnestyusa.org/countries/sri-lanka/, https://www.bbc.co.uk/news/world-south-asia-11999611, https://www.britannica.com/place/Sri-Lanka, https://www.worldbank.org/en/country/srilanka/overview. The data protection has become an important issue due to consumers privacy and security concerns. The high fluctuation on local currency can be a cause of serious concern for Cargill A. Technological factors affecting Sri Lanka. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . However, Sri Lanka also faces some environment challenges e.g. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. Most companies have a business website. 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. Approximately more than 21 million people are populating Sri Lanka. Hence, the sales of grocery stores also increase. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. 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? 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. The retail industry has greatly benefited because of the internet. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. A stronger economy allows consumers to buy products they want. 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). Stores offering food products must comply with health guidelines proposed by the government. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. Heres what you need to know. Here's what you need to know. The Latest Released Micro EVs market study has evaluated the future growth potential of Global Micro EVs market and provides information and useful stats on market structure and size. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. Lastly, Cargill A. should study the consumers leisure interests and should focus more on enhancing the customer experience if customers prefer experiential products over traditional product offerings. 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%). Use of social media has become common in a modern business environment. Excessive resource depletion by Cargill A. can draw the negative response from media, environment protection groups, customers and the general public. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Pestle analysis of Sri Lanka. Political factors: Anti-trust issues. 2023 Euromonitor is privately owned & trademarked. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. Sri Lanka has a mixed legal and judiciary system. High unemployment signals the availability of surplus labor at comparatively lower wages. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. This report series allows you to understand the macro-economic environment as a basis for strategic planning. and cannot be used for research or reference purposes. Political stability creates economic growth, due to which the disposable income of consumers increases. Consumer preferences are the main social factors affecting the retail industry. After we cleared the difference between the two, we conducted the grocery industry analysis. The report . High GDP also signals the consumers ability to spend more on offered products. Economic factors: Nearly $30 trillion dollars in a couple more years. More retail shops are offering food products. 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. 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. In the first stage, we constructed the grocery industry life cycle. Research and development activities are highly important in an environment characterized by creative disruption. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. The maturity stage leads to the decline stage. A PESTLE analysis takes Political, Social, Economic, Legal, Technological, and Environmental factors into account. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. Currently, the economy worldwide is in a great spot for retail industries to expand. Industry analysis provides complete insight into an industry. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. 1,143 Trillion . Today, well discuss the pestle analysis of Sri Lanka. Sri Lanka has realized the significance of science and technology. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. Rather than spending weeks trying to locate where the contamination started. Technological trends can be used to start the creative social media campaigns for developing online brand communities. The adoption of new technologies has shortened the lifecycle of new product development. Certainly, rapid human development is having its toll on the environment. Integrity, Cargill A Case Analysis and Case Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 4452-China-Versus-Japan-On-the-Verge-of-a-Trade-War, 4453-Alleviating-Poverty-and-Malnutrition-Successful-Models, 4457-Sugar-Daddy-Quotas-and-the-U-S-Government, 4458-Australian-Wheat-Board-Ltd-Becoming-a-Grower-owned-Corporation, 4459-Global-Farmer-and-the-Future-of-Soybean-Production-Spanish-Version, 4460-Global-Wine-Wars-New-World-Challenges-Old-A-Spanish-Version, 4461-Global-Conservation-Trust-A-Foundation-for-Food-Security. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. inspiration, guidance, and understanding. Because when contamination happens, every store in the chain has to get rid of the product. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. There is a growing trend towards the use of green/eco-friendly products. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. Sri Lanka is a South Asian country that has a rich cultural heritage. The contamination started toll on the environment the internet long-term sustainability the creative media. The maximum price, ensure a certain quality standard and protect consumers fraudulent..., today we have decided to conduct a grocery industry is moving towards urbanization and industrial manufacturing small. 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