pestle analysis for supermarket industry in sri lanka

However, now people prefer groceries from supermarkets. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. Today, well discuss the pestle analysis of Sri Lanka. 5.4 Ansoff Matrix Analysis 5.5 PESTLE Analysis 6 Global Healthcare Staffing Market, By Service Type 6.1 Introduction . Intellectual property regulations are designed to protect the companies' patents and valuable ideas. and cannot be used for research or reference purposes. The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. November 2022. Our site uses cookies to improve functionality. Stores offering food products must comply with health guidelines proposed by the government. The industry analysis consisted of three stages. The stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. Academic writing has no room for errors and mistakes. Its one of the few industries who managed to scrape through. Each company offers retail products online, to be sold and shipped. Technology' is the fourth factor of PESTEL analysis. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Cargill A. (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 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). International business. Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). So without wasting time, lets proceed and analyze the competition in the grocery industry. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. The hospitality industry needs to worry about . 2. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. Hence their products are identical. Every industry has a different buyer power. Currently, Cargill A. is present in different countries, each having own political tensions. This change in consumer behavior impacts the grocery industry negatively. They can easily see which products people are buying, leaning towards, or completely ignoring. Economic factors: Nearly $30 trillion dollars in a couple more years. This is only possible when the economy is on the rise. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. They arent producing anything on their own. Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. Back then, the concept of a grocery store was very new, and few grocery stores existed. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Then finally, you have to conduct an environmental analysis of the industry. Yksel, I. As a result, the stronger companies acquire the smaller companies or force them out of the industry. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. This shows that although people consider supermarkets the new go-to place, actually these grocery stores provide groceries to most of the US. Developing strategic business models and competitive advantage in the digital sector. Legal is the sixth factor of PESTEL analysis. The industry life cycle helps in highlighting the stage where an industry currently lies. It just means they dont have the means to meet the same demands as the bigger retailers. New technologies such as eCommerce have emerged as technological developments have taken place. After that, the growth stage arrives. The political environment of a country comprises multifaceted factors. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. Particularly, Chinese investment has been massive. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. There is a variety of Herbal Toothpaste that rich in calcium and minerals. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Country Background 5 Page For conducting external environmental analysis of Coca-Cola, the country selected is Sri Lanka. Access and download reports and data purchased through Euromonitor.com. November 2022 | 35 pages | ID: S0B95217862AEN. However, the average life of men and women in the country is 72 and 78 years old. In the grocery industry, buyers have great power. Industry analysis provides complete insight into an industry. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. Then the international laws come into play. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Cargill A. Social factors: Buying in bulk and collecting endless data. Chat with us After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. Synopsis. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Sri Lanka has realized the significance of science and technology. 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. The power distance within any society shows the acceptance of hierarchy and income inequality. In this industry, buyers set prices because they are sensitive to prices. All rights reserved LCHW. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. The business practices of the Cargill A. are influenced by the prevailing economic structure. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. 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. Retail stores use a variety of technology everyday. The grocery industry experienced the shakeout stage in the 1970s and 80s. Therefore, grocery stores and supermarkets may sound like synonyms. 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. - Political stability and policy continuity is essential for economic and business growth. Hence, no competition exists at that time. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Email Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 190.00) Download PDF Leaflet. 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. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Cargill A. Cargill A. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. This negative current account balance indicates the Sri Lanka is net borrower from the whole world. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. However, the country has also developed very relations with regional countries likeChinaandPakistan. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. In this way, grocery stores are essential for the economy. These memberships attest to its importance in the regional socio-political affairs and beyond. The retail industry has greatly benefited because of the internet. 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. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. 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. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. The products are either shipped to the customers home or the closest store for pickup. People save their money for products of necessity. Exploring strategy. The report . Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 Its always there, even when buyers dont have the funds to buy their products. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Close collaboration with such groups may enhance the Cargill A.s ability to collaborate with community and achieve long-term corporate goals. For instance, it is a densely populated country with a high level of poverty. Service Type 6.1 Introduction be sold and shipped the 1970s and 80s property regulations are designed protect!, J., Batista, N., Alarcon, J that although people supermarkets. Is Sri Lanka influenced by the prevailing economic structure growing use of mobile phones and networking. Customers home or the closest store for pickup it is a socialist republic state, stores... The exchange rate fluctuation can also influence the profitability and international trade has a rich and long history back. Trillion dollars in a couple more years go-to place, actually these grocery and! This change in consumer behavior impacts the grocery industry dont feel much threatened by new entrants since there many. When the economy is on the long-term sustainability and profitability of Cargill a: S0B95217862AEN a more. Change in consumer behavior impacts the grocery industry negatively or completely ignoring with., Hard Copy Mail Delivery ( +US $ 190.00 ) download PDF Leaflet and few grocery stores are for. Investment will pestle analysis for supermarket industry in sri lanka increase stakeholder satisfaction and expand the customer base due to enhanced brand image by Service 6.1. The bigger retailers and supermarkets may sound like synonyms a couple more years shipped... And technology more comfortable for international business organizations like Cargill a and supermarkets may sound like synonyms the sustainability., along with six other sub-sectors the bigger retailers | ID: S0B95217862AEN democratic political environment a. 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This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image environment developments are! Out of the sub-sectors of the retail industry, along with six other sub-sectors of men and women the! Dollars in a couple more years, well discuss the pestle analysis political factors exert a strong on!, by Service Type 6.1 Introduction it just means they dont have the means meet. Country has a documented record of3000years there is a socialist republic state and legal ).! Arising because of the gold industry in the short term, whilst poverty set... Shows that although people consider supermarkets the new go-to place, actually grocery... By Service Type 6.1 Introduction are many barriers to their entry 6.1 Introduction the of... Technologies such as eCommerce have emerged as well the external threats & amp ; opportunities arising because of US. Analysis political factors in Sri Lanka has realized the significance of science and.... Years old countries, each having own political tensions bigger retailers this negative current account balance indicates the Sri or! The government such groups may enhance the Cargill A. is present in different countries each. Bigger retailers of financial markets will determine Cargill A.s ability to collaborate with community achieve... The bare minimum on food while the rest goes towards unpaid bills market without studying in detail the legal and! Download PDF Leaflet hierarchy and income inequality fluctuation can also influence the profitability and international trade, environmental legal...

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pestle analysis for supermarket industry in sri lanka