It has very close cultural interactions with India as well. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Wall, S., Minocha, S., & Rees, B. All rights reserved LCHW. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. The country has multiple democratic parties. With the help of this tool, companies decide if they should enter an industry. Yksel, I. Sri Lanka has a mixed legal and judiciary system. 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. Whether their food is actually contaminated or not. Most companies have a business website. The sales of grocery stores depend upon inflation directly. The business and marketing strategies are also influenced by migration. Political factors: Anti-trust issues. This article is only an example November 2022. Its one of the few industries who managed to scrape through. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. A critical study on Various Frameworks used to analyses International Business and its Environment. Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. Dissertation 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. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. Sri Lanka is a beautiful country with fascinating attractions such as beautiful beaches, UNESCO sites, national parks, tea gardens, islands, scenic landscape, unending bird chirping, trumpeting animals, and seafood to name but a few. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. All retail stores need to meet the environmental requirements for consumer and employee safety. Sri Lanka has made some good progress in science and technology over the years. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. 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). So without wasting time, lets proceed and analyze the competition in the grocery industry. Economic factors: Nearly $30 trillion dollars in a couple more years. (Ed.). Or when a certain industry is hit harder than others. For instance, people enjoy buying products in bulk. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. He holds an MSc in Tourism & Hospitality from the University of Sunderland. 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. This is the third major source of revenue generation to the economy. Demography. The grocery industry hit its maturity stage in the early 1990s. Its not only physical retail stores under scrutiny. 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. Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. 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. In fact, Sri Lanka has received the highest investment from China. Growing economies offer wide-ranging growth opportunities to the Cargill A. 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. Springer Berlin Heidelberg. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. They arent producing anything on their own. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Approximately more than21million people are populating Sri Lanka. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). Posted by Zander Henry on 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. Moreover, considering the development and maturity level of technology in the respective market is also important. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. 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, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. P. - John Keells are known as the influential people. When labor markets are flexible, Cargill A. can take advantage of higher labor productivity. 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. But it needs a lot of investment and tech acceleration. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. 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. The regulations affect which products can be imported, exported, and sold in stores. 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. The minimum monthly wage according to the National Minimum Wage Act is 10,000 Rupees worth 50 US dollars. Legal is the sixth factor of PESTEL analysis. 24-27). However, buyer power represents the power of buyers to dictate the prices in the market. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. We are here to help. Subscribe now to get your discount coupon *Only Scope of Sri Lanka - PESTEL Analysis Report. In the first stage, we constructed the grocery industry life cycle. 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. A., & Gomez, o. They can easily see which products people are buying, leaning towards, or completely ignoring. The stability of the political environment in the country will greatly affect the exports of cinnamon. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Retailers who offer products online can collect data provided by their customers. Then finally, you have to conduct an environmental analysis of the industry. 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. please submit your details here. You dont have to walk down the street to your favorite shop anymore. The geographic location of the island played a significant role in history from a strategic point of view. Now that you understand the difference between grocery stores and supermarkets lets proceed further and conduct a grocery industry analysis. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. European Journal of Innovation Management, 16(3), 285-300. These regulations impact the economy, consumer buying habits, and international trade laws. It just means they dont have the means to meet the same demands as the bigger retailers. The hospitality industry needs to worry about . The grocery industry holds great significance since it provides groceries and employment to millions of people. In this way, grocery stores are essential for the economy. Total Sri Lankan oral care market share is approximately Rs. The country exports it toItaly,Germany, India,UK, and theUSA. 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. High unemployment signals the availability of surplus labor at comparatively lower wages. Therefore, grocery stores and supermarkets may sound like synonyms. 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. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). It includes abiding by taxation laws, labor laws, and more. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. Academic writing has no room for errors and mistakes. Each society has distinctive norms and values that play an important role in shaping consumer behavior. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. This is only possible when the economy is on the rise. . Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). 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. Andr Cavalcante, S. (2013). 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