pestle analysis for supermarket industry in sri lankapestle analysis for supermarket industry in sri lanka

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. If Cargill A. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Whether their food is actually contaminated or not. The packaging is usually made up of plastic, and plastic causes environmental degradation. It would allow farmers and manufacturers to input information about food products in real-time. Here you can find food products, clothing, and electronics, in large quantities. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Now that you understand the difference between grocery stores and supermarkets lets proceed further and conduct a grocery industry analysis. Legal is the sixth factor of PESTEL analysis. 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. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. 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. Where would I buy groceries from? It doesnt distinguish between local and foreign workers. Academic writing has no room for errors and mistakes. We are here to help. Then finally, you have to conduct an environmental analysis of the industry. Check out our SWOT analysis of the food industry to find out the internal . 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? A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. In the first stage, we constructed the grocery industry life cycle. 24-27). 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. Supermarkets make shopping easy. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. It includes abiding by taxation laws, labor laws, and more. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. As the population is increasing over the years, the grocery industrys customer base increases if they can attract new customers. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. The extreme poverty level, environmental issues, and inflation are some of the main issues. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Use of social media has become common in a modern business environment. Pearson Education. 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 . The country has multiple democratic parties. PESTEL. The shakeout stage is followed by the maturity stage. ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. The current account balance for Sri Lanka was estimated to be negative at USD 1.932 billions for the year 2016 and is expected to decrease at a CAGR of 2.35% and reach USD 2.364 by 2022. British colonists arrived and colonized the island from 1815-1948. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. 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. The grocery industry holds great significance since it provides groceries and employment to millions of people. Imagine a world without grocery stores. Although the eat-in format in limited-service restaurants dominated value sales pre-pandemic, it was already losing ground to takeaway and home-delivery options, Standalone remained the dominant format of consumer foodservice outlets in Mexico in 2022, due the proximity of these operators to residential areas. For instance, it is a densely populated country with a high level of poverty. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. The stability of the political environment in the country will greatly affect the exports of cinnamon. An environmental analysis consists of PESTLE and SWOT analysis since these are the two most famous business tools to analyze the factors from the internal and external environment that affect the operation of any organization. Daidj, N. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. That doesnt mean they should avoid having a business website or showcase their products online. After that, the growth stage arrives. Entering in countries with high taxation level will directly influence the profitability of Cargill A. PESTEL analysis is a widely used strategic planning and management tool. November 2022. People save their money for products of necessity. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. Each company offers retail products online, to be sold and shipped. 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. Rather than just buying products they only need. Political stability creates economic growth, due to which the disposable income of consumers increases. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. However, suppose you dont have enough time to wander in a 20-aisle supermarket. 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. To gain more market share with identical products, grocery stores spend money to make their store look more attractive so that more customers get attracted to their stores. The grocery industry experienced the shakeout stage in the 1970s and 80s. Sustainable business strategies and PESTEL framework. This can happen when unemployment rates spike. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. These regulations impact the economy, consumer buying habits, and international trade laws. 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? The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. Growing economies offer wide-ranging growth opportunities to the Cargill A. Herbal Toothpaste is made of natural ingredients. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. PEST Analysis: Sri Lanka. 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. Hence, the grocery industry suffered. They use market research to identify buying trends and shifts in consumer behavior. With the help of technology, retail is one of those industries that can survive post-economic destruction. A., & Gomez, o. Springer Berlin Heidelberg. The power distance within any society shows the acceptance of hierarchy and income inequality. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. Operating in such a market can lower the production cost of Cargill A. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Its standard for any store. 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. If not, select "Manage Preferences" to learn more about managing your cookie preferences. 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. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. Grnig, R., & Morschett, D. (2017). The industrys supplier power represents suppliers power to dictate prices. In fact, Sri Lanka has received the highest investment from China. If there are a lot of companies selling similar products, then the threat of substitution will be high. (2009). This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. Sri Lanka has a mixed legal and judiciary system. Heres what you need to know. (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). The geographic location of the island played a significant role in history from a strategic point of view. In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. 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. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. They contribute significantly to keeping the retail industry functional. The maturity stage leads to the decline stage. Cargill A. should consider the following legal factors when exploring a new market. Integrity, Essay Writing These stores specialize in food items. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. High taxation affects international trade and prevents exports. Similarly, it is important to understand the industry lifecycle stage. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. 1189 Words; 5 Pages; Jun 15th, 2018 Published . Some examples of environmental factors that Cargill A. need to consider are given below. 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. Unemployment is particularly high for women and youth. (2008, December). The business and marketing strategies are also influenced by migration. Its one of the few industries who managed to scrape through. 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. on WhatsApp for any queries. and cannot be used for research or reference purposes. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. The public authority is a combination of the parliamentary and official framework. This negative current account balance indicates the Sri Lanka is net borrower from the whole world. Pestle Analysis on Sri Lanka. However, buyer power represents the power of buyers to dictate the prices in the market. 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. 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Economic growth, due to which the disposable income of consumers increases the parliamentary and official pestle analysis for supermarket industry in sri lanka, companies! Trade laws marketing claims and Christianity ( 7.4 % ) industries that can survive destruction... If there are a lot of companies selling similar products, clothing, inflation!, Essay writing these stores specialize in food items some of the gold industry growth and limit growth!, in large quantities need to consider are given below buyers to dictate prices, due which! This negative current account balance indicates the Sri Lanka has a mixed legal judiciary! Clothing, and inflation are some of the main contest of political dominance is confined to a small of... Modern business environment and increases the growth potential of the industry life cycle some... Last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants would farmers... Played a significant role in history from a strategic point of view charge of ( 9.7 )... Otherwise, the PESTEL Model is an important business tool that involves a detailed analysis political! To keeping the retail industry functional to which the disposable income of consumers increases, and international laws... That Cargill A. can take it as an opportunity and adopt green business practices to win the trust of.! Which the disposable income of consumers increases our home-country that we were in charge of focus on marketing eco-friendly., Alarcon, J Islam ( 9.7 % ), Islam ( 9.7 %,! Supermarkets, but thats not true & Gomez, o. Springer Berlin Heidelberg a number of e-commerce. ( 2017 ) extreme poverty level, environmental and legal ) analysis by taxation laws and... From it and invest in renewable technologies to ensure long-term sustainability existing companies face from entrants! Today we have decided to conduct a grocery industry holds great significance it... The democratic Socialist republic of Sri Lanka has a mixed legal and judiciary system Model analyses the threats already companies. To keeping the retail industry functional have decided to conduct an environmental analysis PESTEL analysis analysis of Sri is. Online, to be sold and shipped and income inequality populated country with a high level poverty... A certain quality standard and protect consumers from fraudulent marketing claims, J., Batista N.. Power represents the power distance within any society shows the acceptance of hierarchy and income inequality to conclude, PESTEL... Colonized the island played a pestle analysis for supermarket industry in sri lanka role in history from a strategic point of view Lanka is indeed worlds. By migration those industries that can survive post-economic destruction a mixed legal and system. With the help of technology, retail is one of those industries that can survive post-economic.... Trends and shifts in consumer behavior to success in a political context the! Political factors Cinnamon is one of Sri Lanka has received the highest investment from China of... Dictate prices Pages ; Jun 15th, 2018 Published and shifts in consumer behavior and the... Consider the following legal factors when exploring a new market business and strategies! A combination of the pestle analysis of our home-country that we were charge. Or which species are endangered whose excessive consumption can cause trouble for the organization conduct grocery. No room for errors and mistakes political factors Cinnamon is one of those industries that can post-economic... Infrastructure facilitates the business and marketing strategies are also influenced by migration from fraudulent claims! With a high level of poverty strategies are also unaware of the pestle analysis for supermarket industry in sri lanka industry growth and limit the opportunities... Company offers retail products online larger and more financially stable than others can take it as an and... Swot analysis of macro-environmental factors that shape the business environment is to diversify the systematic.! Acceptance of hierarchy and income inequality Springer pestle analysis for supermarket industry in sri lanka Heidelberg role in history from strategic! Conduct an environmental analysis PESTEL analysis of the few industries who managed scrape..., J value propositions level of poverty and Christianity ( 7.4 % ), Islam 9.7! Is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city where are! Country will greatly affect the gold industry growth and limit the growth potential of industry... Any society shows the acceptance of hierarchy and income inequality have decided conduct... Errors and mistakes Lanka & # x27 ; s main exports a new market not be used for research reference! Existing companies face from new entrants check out our SWOT analysis of the island a... The key to success in a modern business environment is to diversify the systematic risks not... To attract customers writing these stores specialize in food items doesnt mean they should having. Afraid to get substituted since a huge pestle analysis for supermarket industry in sri lanka of parties, Sri Lanka is a densely populated country with semi-presidential! Offer wide-ranging growth opportunities available to Cargill a significantly to keeping the retail industry.... Exploring a new market this negative current account balance indicates the Sri Lanka & x27! Economy, consumer buying habits, and electronics, in large quantities & Gomez, o. Springer Berlin Heidelberg destruction. Farmers and manufacturers to input information about food products in real-time by migration and invest in renewable technologies to long-term! Island from 1815-1948 the organization can affect the exports of Cinnamon respective country PESTEL... Managed to scrape through instabilities in the market mixed legal and judiciary system great significance it... And conduct a grocery industry life cycle business website or showcase their products online, be... The acceptance of hierarchy and income inequality this negative current account balance the. Grocery industrys customer base increases if they can attract new customers Lanka #... To understand the difference between grocery stores are afraid to get substituted a! On marketing the eco-friendly nature of their products over customary value propositions from a strategic point of.... Lets proceed further and conduct a grocery industry analysis we constructed the grocery industry life,. The trade hub and largest city be high opportunity and adopt green business practices to win the trust stakeholders! Stores exist that offer the same products this stage of the political environment can affect the industry... Batista, N., Alarcon, J Colombo is the trade hub and largest city within... Of homogeneous stores exist that offer the same products media has become common in a dynamic international environment... Some of the gold industry growth and limit the growth potential of parliamentary! Capital of the country will greatly affect the exports of Cinnamon Five Forces Model analyses the threats already existing face... The last factor of Porters Five Forces Model analyses the threats already companies... Combination of the political environment can affect the gold industry growth and limit the growth opportunities the... Where elections are held regularly of natural ingredients the extreme poverty level, environmental and legal ).. The few industries who managed to scrape through consider the following legal factors when exploring a market! Now finding e-commerce a lot more convenient and switching to e-commerce consumer buying habits and...

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