Now that you understand the difference between grocery stores and supermarkets lets proceed further and conduct a grocery industry analysis. Demography. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. 24-27). Cargill A. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. Research and development activities are highly important in an environment characterized by creative disruption. Warning! Our site uses cookies to improve functionality. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. 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. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. These steps can help you get back, Copyright 2020 Weberience LLC. As more people join, the competition in the industry increases. 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. Check out our SWOT analysis of the food industry to find out the internal . It has very close cultural interactions with India as well. Currently, Cargill A. is present in different countries, each having own political tensions. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . Strategy planning process often requires five steps -. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . November 2022 | 35 pages | ID: S0B95217862AEN. 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. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. For instance, smaller stores are making the shift to computers or iPads at the register. Technological factors affecting Sri Lanka. Its non-negotiable. The revenue and profitability of any retail store are affected by government policies. Pestle analysis of Sri Lanka. IGI Global. 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 academic writing services at least once in their lifetime! Sustainable business strategies and PESTEL framework. Certainly, rapid human development is having its toll on the environment. But even smaller shops can benefit from offering discounts and sales on products. According to an estimate,74.9%of the people are Sinhalese, other ethnic groups are Sri Lankan Tamil (11.2%), Sri Lankan Moors (9.2%), Indian Tamil (4.2%), and others (0.5%). It is officially known as the Democratic Socialist Republic of Sri Lanka. This helps the grocery industry generate high revenue. Bureaucracy and corruption negatively influence the business environment. Curious about how we partner with you to help you solve your complex modern-day business problem? Stores offering food products must comply with health guidelines proposed by the government. The adoption of new technologies has shortened the lifecycle of new product development. Some examples of environmental factors that Cargill A. need to consider are given below. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. Here's what you need to know. Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). Sri Lankas top main exports are ladies undergarments and tea. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. When its on the decline, the opposite is true. Grnig, R., & Morschett, D. (2017). All consumers love a good deal. Entering in markets where technological advancement has not reached the maturity means Cargill A. can increase the market share by focusing on emerging technological innovations. The grocery industry holds great significance since it provides groceries and employment to millions of people. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. Which countries are moving up the value added chain away from primary sectors? GSTF International Journal on Computing, 1(1), 73-80. Incomes could face challenges in the short term, whilst poverty is set to rise, but the middle class is growing longer term. To conduct an industry analysis, first, you must conduct an industry life cycle. Because no one can afford or justify the purchases. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. Because when contamination happens, every store in the chain has to get rid of the product. However, suppose you dont have enough time to wander in a 20-aisle supermarket. The country is drawing a lot of foreign investments every year. Operating in such a market can lower the production cost of Cargill A. Follow this link to learn more about our cookie policy and how we use cookies. . - If the company block logistics economic crisis then . Financial Times Prentice Hall. 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. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. If there are a lot of companies selling similar products, then the threat of substitution will be high. They all promote the countrystourism industry. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. Like a point of sales system. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. Proposal, Question And as the retailer grows, new legislative laws come into effect. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. The products are either shipped to the customers home or the closest store for pickup. There are almost 40,000 stores in the US that sell groceries. Moreover, the business performance of Cargill A. is also influenced by the extent to which the host country government has spent on core infrastructure development. IEEE. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Or learn more about our privacy policy and how we use and store your data. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. Economic. However, Indian and Sri Lankan cultures are almost the same. Consumer preferences are the main social factors affecting the retail industry. 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 retail store needs to meet legislative conditions before opening the shop. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Cargill A. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. This is the exact premise behind CostCo, a Canadian retailer. USD 300. Strength. 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. All rights reserved LCHW. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. PEST Analysis: Sri Lanka. Then you have to assess the competition in that industry. We hope the article PESTEL analysis of Sri Lanka has been useful. The state of the environment affects the quality of the product and the selection. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. 2. It maintains very good relations with India; however, the relationship was tested a number of times in the past. Hence, Cargill A. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. It is important for Cargill A. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. (2014). However, now people prefer groceries from supermarkets. We also cant forget about environmental issues inside of the stores either. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. 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). The presence at international stage increases the companys sensitivity to changes in political environments of different countries. At this point, the industrys growth rate decreases since it is already operating at its full potential. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. 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. In this PESTLE analysis, we'll look at the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the food industry; in particular, we'll look at how both restaurateurs and food distributors might be affected by current trends. Revista ESPACIOS, 39(16). The competition in this market is increasing and the small and local players are facing difficulties in survival. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Cargill A. Its always there, even when buyers dont have the funds to buy their products. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. Choosing the vision, mission and the reason of existence for Sri Lanka. Then, they shape their offerings based on this data. Country Background 5 Page For conducting external environmental analysis of Coca-Cola, the country selected is Sri Lanka. The country has multiple democratic parties. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. I cant even imagine how difficult my life would be. 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. Sri Lanka is a South Asian country that has a rich cultural heritage. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. The power distance within any society shows the acceptance of hierarchy and income inequality. In fact, Sri Lanka has received the highest investment from China. Powerful Essays. 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. Issa, T., Chang, V., & Issa, T. (2010). Customers have more disposable income to spend on friverous products. In FY22, the company obtained three new patents; in addition, it submitted 36 new designs and applied for about 44 more patents across several . But if the countrys political parties are fickle, it can easily turn into a problem. Weve seen shifts in how eCommerce retail leaders operate over the last few years. PESTEL. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Instead, they are owned by small sole proprietors. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. as they determine the overall economic environment of the country. The regulations affect which products can be imported, exported, and sold in stores. All retail stores need to meet the environmental requirements for consumer and employee safety. Solution, Assignment Writing The retail industry is everywhere. Then, an industry goes through the shakeout stage. However, there are some social issues challenging Sri Lanka today. Likewise, the literacy rate (over 92%) is very high as well. Which products can be imported, exported, and poor waste management study of the stores can heavy. 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