The country exports it toItaly,Germany, India,UK, and theUSA. In some cases, this can be beneficial. Revista ESPACIOS, 39(16). The supermarket industry in Sri Lanka is set out for an explosive growth in the recent years this is with the western lifestyle of modern Sri Lankans where convenience is a key benefit sought . 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The environmental standards, laws and regulations vary across different markets. Posted by Zander Henry on 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 PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . Today, new products are developed quickly, and supply chain partners have also gained more power. If there are a lot of companies selling similar products, then the threat of substitution will be high. So naturally, this causes rivalry among grocery stores. The economy is not big as the country is small; however, it is expected to grow and reach around $97 billion by the end of 2022. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. Aug-22-2018. 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. It also indicates some of the challenges that the country is facing currently, while addressing the pull factors that may entice foreign investors to give it a thought. inspiration, guidance, and understanding. When labor markets are flexible, Cargill A. can take advantage of higher labor productivity. Thats when pre-existing grocery stores started to force the new and not financially strong stores to leave the market so that they could enjoy greater market share. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. (2009). Springer Berlin Heidelberg. However, Sri Lanka also faces some environment challenges e.g. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. A PESTLE analysis is used in business to assess the industry which an organisation is in. It also means having to abide by more economic and political factors. Integrity, Essay Writing The industry life cycle helps in highlighting the stage where an industry currently lies. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. Pearson Education. Research and development activities are highly important in an environment characterized by creative disruption. Like a point of sales system. Other small name companies cant compete on the same scale. civil wars, political power struggle, and suppressing dissent and activism in the past. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. Hence their products are identical. As a result, the revenue of the grocery industry will fall. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. 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. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. The adoption of new technologies has shortened the lifecycle of new product development. Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. 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. 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. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. Cargill A. need to study data protection regulations to protect the customer data. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. The industrys supplier power represents suppliers power to dictate prices. Our site uses cookies to improve functionality. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Cargill A. against other market players. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. Amazon and Walmart are going head-to-head. The National Minimum Wage Act, No. 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. Stores offering food products must comply with health guidelines proposed by the government. As more people join, the competition in the industry increases. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. 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? This is the exact premise behind CostCo, a Canadian retailer. However, the country has also developed very relations with regional countries likeChinaandPakistan. This is why grocery stores in the industry feel threatened. Issa, T., Chang, V., & Issa, T. (2010). The business and marketing strategies are also influenced by migration. If you have BIG dreams to score BIG, think out Help, Academic Choosing the vision, mission and the reason of existence for Sri Lanka. Since grocery stores are a lot more than supermarkets, they are responsible for providing employment to many people. Its always there, even when buyers dont have the funds to buy their products. These regulations impact the economy, consumer buying habits, and international trade laws. 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. 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? Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. However, Condliffe (2019) reports that social media particularly Facebook, have been used to spread false information to bring about social disturbance and disharmony in the country. Customers have more disposable income to spend on friverous products. Consumer preferences are the main social factors affecting the retail industry. 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. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 Tea and womens undergarments are the two top exports of Sri Lanka that mostly go to countries such as the USA, the UK, India, Germany, and Italy. take time-critical decisions. 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. 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). A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Big name companies are able to offer a selection online. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. Where should we focus our expansion strategy? (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). correct email will be accepted, (Approximately But now some stores like Walmart are looking to use blockchain technology. Consequently, a huge number of tourists flock to the country every year. Andr Cavalcante, S. (2013). For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. 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. The consumers spending patterns are influenced by their purchasing power of money. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. The public authority is a combination of the parliamentary and official framework. The grocery industry hit its maturity stage in the early 1990s. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. British colonists arrived and colonized the island from 1815-1948. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Therefore, if there is high inflation, people will be reluctant to buy more. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. Total Sri Lankan oral care market share is approximately Rs. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. They all promote the countrystourism industry. However, there are some social issues challenging Sri Lanka today. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Weve seen shifts in how eCommerce retail leaders operate over the last few years. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. 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. In fact, Sri Lanka has received the highest investment from China. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. and cannot be used for research or reference purposes. submission, reproduction, or any other misuse in any manner. Exploring strategy. Companies set targeted ads to customers most likely to visit their stores and buy from them. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. The regulations affect which products can be imported, exported, and sold in stores. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. Hence, the grocery industry suffered. 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. 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. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). 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. The stores can face heavy penalties, impacting the worlds leading developing country we had was do... 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