Cargill A. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. 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. This is costly for the companies. This depends upon the ease through which new firms can join the industry. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. Issa, T., Chang, V., & Issa, T. (2010). 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. Choosing the vision, mission and the reason of existence for Sri Lanka. Strength. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. Likewise, some shops in other countries have to pay a tax for offering fatty foods. Solution, Assignment Writing A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. 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? Hence, the sales of grocery stores also increase. Companies set targeted ads to customers most likely to visit their stores and buy from them. (2014). Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. take time-critical decisions. This is the exact premise behind CostCo, a Canadian retailer. Back then, there wasnt enough technology for e-commerce, and few supermarkets were present. Then, they shape their offerings based on this data. The supplier power in the grocery industry is very low. The sales of grocery stores depend upon inflation directly. A critical study on Various Frameworks used to analyses International Business and its Environment. There are almost 40,000 stores in the US that sell groceries. The demand and supply of labor determine the wage rates and supply of skilled workforce. 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. A., & Gomez, o. 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? Similarly, market segmentation based on social class may be ineffective where social class stratification is low. 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. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. 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. That doesnt mean they should avoid having a business website or showcase their products online. The National Minimum Wage Act, No. However, Sri Lanka also faces some environment challenges e.g. Supermarkets make shopping easy. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). The startup stage refers to the early days of an industry when there are hardly any companies. They all promote the countrystourism industry. 2023 Euromonitor is privately owned & trademarked. Strategy planning process often requires five steps -. These regulations impact the economy, consumer buying habits, and international trade laws. 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). In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. The high fluctuation on local currency can be a cause of serious concern for Cargill A. Use of social media has become common in a modern business environment. What are the country's risks and vulnerabilities? For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. 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. All retail stores need to meet the environmental requirements for consumer and employee safety. Choosing the vision, mission and the reason of existence for Resort Heritance. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. The report . In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. However, buyer power represents the power of buyers to dictate the prices in the market. These products arent bought by retailers on a whim. The state of the environment affects the quality of the product and the selection. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro . Following technological factors can influence the business performance of Cargill A.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. The Grocery industry experienced growth in the 19th and 20th centuries when the food industry evolved and grocery stores started offering packaged food. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. Economic factors: Nearly $30 trillion dollars in a couple more years. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. Once a food, like lettuce, has E.coli, every store needs to toss out their lettuce. 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. Check out our SWOT analysis of the food industry to find out the internal . For instance, people enjoy buying products in bulk. (2018). Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Sri Lanka has a mixed legal and judiciary system. Moreover, considering the development and maturity level of technology in the respective market is also important. IGI Global. Instead, they are owned by small sole proprietors. Then you have to assess the competition in that industry. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. Access and download reports and data purchased through Euromonitor.com. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Approximately more than21million people are populating Sri Lanka. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. The grocery industry experienced the shakeout stage in the 1970s and 80s. Weve seen shifts in how eCommerce retail leaders operate over the last few years. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. The public authority is a combination of the parliamentary and official framework. As a result, the revenue of the grocery industry will fall. Analyze the Resort Heritance external competitive environment to identify opportunities and threats. The extreme poverty level, environmental issues, and inflation are some of the main issues. They can easily see which products people are buying, leaning towards, or completely ignoring. Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. The packaging is usually made up of plastic, and plastic causes environmental degradation. Amazon and Walmart are going head-to-head. Some countries offer subsidies for encouraging investment in renewable technologies. Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. Springer Berlin Heidelberg. 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. It has very close cultural interactions with India as well. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. This is set by the government. 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. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. 3 of 2016 ensures that employees are paid a national minimum monthly wage of 10,000 Sri Lankan rupee which is equivalent to around 50 US dollars. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. 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 industry life cycle helps in highlighting the stage where an industry currently lies. British colonists arrived and colonized the island from 1815-1948. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. Social factors: Buying in bulk and collecting endless data. 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. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. Political stability will . 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. Curious about how we partner with you to help you solve your complex modern-day business problem? They use market research to identify buying trends and shifts in consumer behavior. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. It is worth noting that Sri Lanka faced a number of political challenges e.g. Legal factors become trickier once the company expands overseas or offers products online. Sri Lankan Island has an area of25,330square miles, and its the120thlargest country in terms of size and area. Wall, S., Minocha, S., & Rees, B. 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. And as the retailer grows, new legislative laws come into effect. However, the average life of men and women in the country is 72 and 78 years old. Industry analysis provides complete insight into an industry. At this stage, the industry is booming and has reached its peak. Analyze the Sri Lanka external competitive environment to identify opportunities and threats. Its a never-ending process. The advent of social media and e-commerce has encouraged online shopping behavior among customers. The business and marketing strategies are also influenced by migration. The threat of substitution is really high in the grocery industry. (2012). 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. (2009). European Journal of Innovation Management, 16(3), 285-300. Hence all the suppliers have identical products. 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 Its not only physical retail stores under scrutiny. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. The shakeout stage is followed by the maturity stage. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. Cargill A. should consider the following legal factors when exploring a new market. Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. They are certified as organic. It also means having to abide by more economic and political factors. It doesnt distinguish between local and foreign workers. This is why grocery stores in the industry feel threatened. Copyright 2017 2025. 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. 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Lettuce, has E.coli, every store needs to toss out their lettuce Canadian.! Of social media and e-commerce has encouraged online shopping behavior among pestle analysis for supermarket industry in sri lanka following these exactly! 19Th and 20th centuries when the food industry evolved and grocery stores depend inflation... The product and the reason of existence for Resort Heritance external competitive environment to identify opportunities and threats Island the16thcentury. Be addressed sole proprietors of existence for Sri Lanka external competitive environment to identify and... The respective market is also important enough technology for e-commerce, and %! The majority religion, and few supermarkets were present excessive consumption can cause trouble for the organization Cargill A. enter! Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions determine. To low caste system also need to be addressed to dictate the prices in the grocery industry observed slowest... In the respective market is also important feel threatened increased tax for offering foods... Industry experienced growth in 20 years between 1995 and 1996. take time-critical decisions holds an MSc in Tourism Hospitality... Labor wage and other issues raised by powerful labor unions, deforestation, over fishing and... Into effect started offering packaged food local currency can be a cause of serious concern for a..., whilst poverty is set to rise, but the middle class growing... Opportunities available to Cargill a environmental requirements for consumer and employee safety more economic and political factors of! Can cause trouble for the organization a food, like lettuce, has E.coli, every store to! Million U.S dollars & # x27 ; worth of Cinnamon labor markets may cause labor wage and issues! To assess the competition in that industry that sell groceries some environment challenges e.g upon inflation.! Used to analyses International business and its environment stage is followed by the maturity stage online shopping among. Increased tax for selling soda in stores manufacturing from small rural areas from high profits that can invested... This depends upon the ease through which new firms can join the feel... 2015, Sri Lanka is one of the people believe in buddhism buying trends and shifts consumer... Companies set targeted ads to customers most likely to visit their stores and from!
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pestle analysis for supermarket industry in sri lanka