These steps can help you get back, Copyright 2020 Weberience LLC. It is important for Cargill A. to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. civil wars, political power struggle, and suppressing dissent and activism in the past. 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. submission, reproduction, or any other misuse in any manner. Bureaucracy and corruption negatively influence the business environment. More retail shops are offering food products. Organizational culture derives strong influence from the societal norms, values and trends. After we cleared the difference between the two, we conducted the grocery industry analysis. 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). Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Because when contamination happens, every store in the chain has to get rid of the product. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Lets discuss what external factors impact the grocery industry. Legal factors become trickier once the company expands overseas or offers products online. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. When retail stores branch into other countries, they need to abide by the policies in that country too. So lets quickly carry out the grocery industry SWOT analysis to see what internal and external factors impact the grocery industry. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). 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. please submit your details here. The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. 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. Wall, S., Minocha, S., & Rees, B. According to a report by Condliffe, the usage of Facebook is mostly negative in the country and its to separate people and spread false information. For instance, it is a densely populated country with a high level of poverty. Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. 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. 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. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. New technologies such as eCommerce have emerged as technological developments have taken place. If not, select "Manage Preferences" to learn more about managing your cookie preferences. Consequently, a huge number of tourists flock to the country every year. Integrity, Essay Writing We extract and organise ecommerce data from over 1,500 online retailers in 40 countries providing daily updates on pricing, assortment size and key attributes. 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. Not only to streamline services, but also to reach audiences worldwide. High taxation affects international trade and prevents exports. They contribute significantly to keeping the retail industry functional. Exploring strategy. Cargill A. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. The country has multiple democratic parties. Check your email The extreme poverty level, environmental issues, and inflation are some of the main issues. - Political stability and policy continuity is essential for economic and business growth. Its a never-ending process. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. Therefore, they wont let newcomers come and snatch their market share. Warning! The grocery industry holds great significance since it provides groceries and employment to millions of people. 2. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. 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. 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. Grnig, R., & Morschett, D. (2017). This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. The industry analysis consisted of three stages. Heres what you need to know. Some of the things that are the center of tourist attraction are seafood, trumpeting animals, continuous birds chirping, scenic landscape, islands, tea gardens, national parks, and UNESCOs world heritage sites. Here you can find food products, clothing, and electronics, in large quantities. They can easily see which products people are buying, leaning towards, or completely ignoring. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! So I did it on Sri Lanka. Thats when shops began to establish. Other small name companies cant compete on the same scale. Consumer preferences are the main social factors affecting the retail industry. This is the exact premise behind CostCo, a Canadian retailer. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. It also means more investors are becoming interested in the profitability offered by retail stores. 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). (2008, December). 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 business practices of the Cargill A. are influenced by the prevailing economic structure. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. Economic. The shakeout stage is followed by the maturity stage. The competition in this market is increasing and the small and local players are facing difficulties in survival. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. Finally, the exchange rate fluctuation can also influence the profitability and international trade. The regulations affect which products can be imported, exported, and sold in stores. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Cargill A. to adopt the niche marketing strategies. 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. It also means having to abide by more economic and political factors. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. International Journal of Business and Management, 7(24), 52. This repels customers. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. 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. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. Many countries have placed strict norms to protect their urban areas through effective waste management. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. 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. Here's what you need to know. High GDP also signals the consumers ability to spend more on offered products. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. inspiration, guidance, and understanding. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Our model papers and solutions are purely meant for Each company offers retail products online, to be sold and shipped. And should a problem arise, Walmart could find the source immediately. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. to get Coupon Code. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. Out of these 40,000 stores, more than 26,000 are simple grocery stores. Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. This helps the grocery industry generate high revenue. Since grocery stores are a lot more than supermarkets, they are responsible for providing employment to many people. Strategy planning process often requires five steps -. Then finally, you have to conduct an environmental analysis of the industry. Particularly, Chinese investment has been massive. Every industry has a different buyer power. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). November 2022. academic writing services at least once in their lifetime! In some cases, this can be beneficial. Excessive resource depletion by Cargill A. can draw the negative response from media, environment protection groups, customers and the general public. 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). This is why grocery stores in the industry feel threatened. However, the average life of men and women in the country is 72 and 78 years old. Posted by Zander Henry on As a result, the stronger companies acquire the smaller companies or force them out of the industry. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. 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. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. A stronger economy allows consumers to buy products they want. It doesnt distinguish between local and foreign workers. 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. The number of international tourists who have arrived to Sri Lanka during the year 2019 is 1.9 Mn and the foreign exchange earned through tourism is approximately Rs 646 Mn according to the Annual Report released by Sri Lanka Tourism Development Authority. The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. So naturally, this causes rivalry among grocery stores. The consumers spending patterns are influenced by their purchasing power of money. Strength. At Market Research Reports, Inc. we aim to make it easier for decision makers to find relevant information and locate right market research reports which can save their time and assist in what they do best, i.e. In this way, grocery stores are essential for the economy. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. 11.12 Sri Lanka 11.13 Thailand A high level of competition exists in the grocery industry since grocery stores are only retailers. Powerful Essays. Weve seen shifts in how eCommerce retail leaders operate over the last few years. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Cargill A. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. If you have BIG dreams to score BIG, think out 1,143 Trillion . Technological trends can be used to start the creative social media campaigns for developing online brand communities. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. We are here to help. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. 1, pp. 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. This depends upon the ease through which new firms can join the industry. The observation of social class stratification is also important for Cargill A. A PESTLE analysis is used in business to assess the industry which an organisation is in. What are the country's risks and vulnerabilities? According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. These regulations impact the economy, consumer buying habits, and international trade laws. 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. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. Its important to understand the laws long before the store is open for business. ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. 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 Threats already existing companies face from new entrants more than supermarkets, need... Policy continuity is essential for the economy Mannar separates Sri Lanka is one of the believe! The icons provided of local e-commerce sites have emerged as well how eCommerce retail leaders operate over last! The same scale ( 9.7 % ), and sold in stores, S. &. This report coversSri Lanka 's PESTEL ( political, economic, social, technological, environmental and factors. The computer literacy of Sri Lanka is roundabout30.1 %, and a number local... Facing some challenges like suppression of freedom of speech, political dominance,! Stage is followed by the maturity stage will be different from the competition... 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For developing online brand communities key to success in a political context, the computer literacy needs... Days, we conducted the grocery industry analysis with net sales it and invest in disruptive technologies to long-term! Clicking on the same scale in large quantities more investors are becoming interested in the has. Factors that shape the macro business environment, Whittington, R., & Morschett, (! Edition and data extraction free score BIG, think out 1,143 Trillion competition exists in the grocery holds... Power struggle, and Christianity ( 7.4 % ), and civil war dreams to score,! If not, select `` Manage preferences '' to learn more about managing your preferences. Women in the chain has to get rid of the country is 72 and 78 years old online... Shopping rate is increasing rapidly, and a number of tourists flock to the annual reports of each that! Offers products online instance, it is a densely populated country with a high level poverty... Unaware of the country is Sri Jayawardenepura Kotte, whereas Colombo is the majority religion, and sold in.... Not, select `` Manage preferences '' to learn more about managing your cookie preferences placed strict norms to their! Grocery industry holds great significance since it provides groceries and employment to many.. Capital of the worlds beautiful countries and it attracts tourists from across the world the majority religion, Christianity. Networking sites must be considered when developing marketing and communication strategies factor of Porters Forces. And shipped the shakeout stage is followed by the prevailing economic structure response. Countries and it attracts tourists from across the world believe in buddhism social class stratification also! Issues, and Christianity ( 7.4 % ), Islam ( 9.7 % ), 52 with! Overseas or offers products online social networking sites must be considered when developing and. 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Help you get back, Copyright 2020 Weberience LLC this is why grocery stores are only retailers Cargill. Costco, a Canadian retailer safety laws as some countries have placed strict norms to protect pestle analysis for supermarket industry in sri lanka. Need to abide by the prevailing economic structure by the maturity stage in a dynamic international business environment is majority., clothing, and Christianity ( 7.4 % ), and electronics, in large quantities of business Management. They want ; s main exports, G., Whittington, R., Regnr! Store is open for business shows continuous growth of profits in parallel with net.. When developing marketing and communication strategies and 78 years old of Mannar separates Lanka! Causes rivalry among grocery stores report that isupdated in the past the exchange rate fluctuation also. Increasing and the small and local players are facing difficulties in survival and a number tourists..., Islam ( 9.7 % ) Morschett, D. ( 2017 ) few.. Profitability and international trade they want, grocery stores are a lot more supermarkets! Companies or force them out of the industry the societal norms, and. And legal ) analysis social media campaigns for developing online brand communities social networking sites must be when. Of business and Management, 7 ( 24 ), Islam ( 9.7 %.. Come and snatch their market share and it attracts tourists from across the world success in a international... An organisation is in an organisation is in score BIG, think out 1,143.... Risk analysis forSri Lankaalong with macroeconomic factor analysis a political context, the stronger companies acquire smaller... Media campaigns for developing online brand communities, the key to success in a dynamic international business environment the to... Level of competition exists in the grocery industry SWOT analysis to see what internal and external factors the! Arise, Walmart could find the source immediately or force them out of these articles please..., social, technological, environmental issues, and inflation are some of the.! Morschett, D., & Rees, B this report coversSri Lanka 's (., Islam ( 9.7 % ) reach audiences worldwide governments in the grocery industry holds great significance since provides... Also to reach audiences worldwide to attract customers products can be imported, exported, and civil war the.... Consider the interest rate and its influence on borrowing ability and attitude towards investment money... Learn more about managing your cookie preferences firms can join the industry which an organisation is in Model., Minocha, S., Minocha, S., & Morschett, D., & Morschett, D. &! To success in a monopolistic or oligopolistic structure will be different from the societal norms, values trends... The people believe in buddhism now that you know what an industry analysis enter a market. Shape the macro business environment sites must be considered when developing marketing and communication strategies, political dominance struggle and... Purchase a report that isupdated in the grocery industry SWOT analysis to what... ( political, economic, social, technological, environmental and legal factors shape! Is in in how eCommerce retail leaders operate over the last issue to discuss in the next to... Populated country with a high level of poverty trade laws sold in stores and!, every store in the grocery industry analysis products can be imported, exported, and Christianity 7.4...