Retailers who offer products online can collect data provided by their customers. They arent producing anything on their own. The international presence of Cargill A. require the organization to consider these differences to avoid undesired circumstances carefully. Grocery stores mainly keep packaged food items. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. However, more needs to be done to accelerate the digitalisation process. Back then, the concept of a grocery store was very new, and few grocery stores existed. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. 1,143 Trillion . High taxation affects international trade and prevents exports. In this way, grocery stores are essential for the economy. Copyright 2017 2025. Yksel, I. Most companies have a business website. Amazon and Walmart are going head-to-head. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Ansoff Matrix in McDonalds (McDonalds Growth Strategy), https://www.amnestyusa.org/countries/sri-lanka/, https://www.bbc.co.uk/news/world-south-asia-11999611, https://www.britannica.com/place/Sri-Lanka, https://www.worldbank.org/en/country/srilanka/overview. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. 1, pp. November 2022 | 35 pages | ID: S0B95217862AEN. More retail shops are offering food products. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. As a result, the revenue of the grocery industry will fall. They can easily see which products people are buying, leaning towards, or completely ignoring. 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. However, they are quite different. This negative current account balance indicates the Sri Lanka is net borrower from the whole world. The grocery industry experienced the shakeout stage in the 1970s and 80s. 11.12 Sri Lanka 11.13 Thailand The industrys supplier power represents suppliers power to dictate prices. They all promote the countrystourism industry. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. In FY22, the company obtained three new patents; in addition, it submitted 36 new designs and applied for about 44 more patents across several . A retail store needs to meet legislative conditions before opening the shop. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. In the first stage, we constructed the grocery industry life cycle. If you are looking for a market research solution for your research requirements, please begin your search using the search box on top of this page or use our chat system to speak to our market research consultants or directly write to us. Understanding the impact of technology on firms business models. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. The stability of the political environment in the country will greatly affect the exports of cinnamon. Retail stores use a variety of technology everyday. But it needs a lot of investment and tech acceleration. Companies set targeted ads to customers most likely to visit their stores and buy from them. For instance, people enjoy buying products in bulk. The Sri Lankan economy is going through a massive . Now that you understand the difference between grocery stores and supermarkets lets proceed further and conduct a grocery industry analysis. 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. Then, an industry goes through the shakeout stage. 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But if the countrys political parties are fickle, it can easily turn into a problem. The high fluctuation on local currency can be a cause of serious concern for Cargill A. Its standard for any store. Providing a secure work environment for the workforce is the ethical and moral obligation of Cargill A. 1. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. They use market research to identify buying trends and shifts in consumer behavior. The retail industry is everywhere. 5 Market Analysis 5.1 Regulatory Scenario . The sales of grocery stores depend upon inflation directly. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. 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. 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 demand and supply of labor determine the wage rates and supply of skilled workforce. Where would I buy groceries from? Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. Customers have more disposable income to spend on friverous products. 8.4 Bn. Therefore, if there is high inflation, people will be reluctant to buy more. This report series allows you to understand the macro-economic environment as a basis for strategic planning. IEEE. Consumer preferences are the main social factors affecting the retail industry. This PESTEL/PESTLE analysis reflects a number of opportunities and threats that Unilever must prioritize in its strategies for growth and global expansion in the consumer goods market. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Cargill A. It is officially known as the Democratic Socialist Republic of Sri Lanka. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Cargill A. due to jeopardized public trust on business organizations and overall political and economic structure. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. Social factors: Buying in bulk and collecting endless data. We hope the article PESTEL analysis of Sri Lanka has been useful. In some countries, recycling has almost become a business norm. 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. All retail stores need to meet the environmental requirements for consumer and employee safety. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. High unemployment signals the availability of surplus labor at comparatively lower wages. After we cleared the difference between the two, we conducted the grocery industry analysis. For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. We are here to help. These regulations impact the economy, consumer buying habits, and international trade laws. As a result, the stronger companies acquire the smaller companies or force them out of the industry. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). 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. Cargill A. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Hence, no competition exists at that time. Dissertation A detailed analysis of the technological environment can help Cargill A. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. So without wasting time, lets proceed and analyze the competition in the grocery industry. 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. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. - If the company block logistics economic crisis then . It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. These conditions are often standard. This can happen when unemployment rates spike. What are the best sectors for investment? Cargill A. must consider these factors to ensure compliance with consumer protection laws. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. 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. Its top imports are refined petroleum, knitted fabric, cars, gold, and broadcasting equipment that mostly come from China, India, UAE, Singapore, and Malaysia (OEC, 2021). The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. If you have BIG dreams to score BIG, think out Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. Total Sri Lankan oral care market share is approximately Rs. As does data and copyright laws. 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. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Developing strategic business models and competitive advantage in the digital sector. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. Hence their products are identical. 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