When its on the decline, the opposite is true. M Market Research Reports and the M Market Research Reports Logo are registered trademarks of Market Research Reports, Inc. Disclaimer: Market Research Reports, Inc. has no affiliation to, and is not associated with any other website(s) or organization(s). Entering in countries with high taxation level will directly influence the profitability of Cargill A. 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. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. For instance, smaller stores are making the shift to computers or iPads at the register. In the first stage, we constructed the grocery industry life cycle. 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. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. This is set by the government. As Cargill A. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. They are certified as organic. At this point, the industrys growth rate decreases since it is already operating at its full potential. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Where would I buy groceries from? Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Cargill A. to adopt the niche marketing strategies. So naturally, this causes rivalry among grocery stores. Therefore, grocery stores and supermarkets may sound like synonyms. 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Surely, it needs to work on political stability, and reforms. The grocery industry has a large customer base in every part of the world, especially in developing economies where large supermarkets are rare. (2014). Besides that, in the growth phase, consumers have many alternatives. A strategic framework for technology evaluation. Close collaboration with such groups may enhance the Cargill A.s ability to collaborate with community and achieve long-term corporate goals. Follow this link to learn more about our cookie policy and how we use cookies. And should a problem arise, Walmart could find the source immediately. Larger retailers can achieve this easier than mom and pop shops. and cannot be used for research or reference purposes. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. PESTEL. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. This is the third major source of revenue generation to the economy. This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis forSri Lanka. Mobile adoption is very strong, but innovation potential is lacking. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? Sri Lanka has a mixed legal and judiciary system. The Latest Released Micro EVs market study has evaluated the future growth potential of Global Micro EVs market and provides information and useful stats on market structure and size. US$ 300.00. Help, Academic However, the average life of men and women in the country is 72 and 78 years old. We also cant forget about environmental issues inside of the stores either. When labor markets are flexible, Cargill A. can take advantage of higher labor productivity. 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. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. (2012). November 2022. Revista ESPACIOS, 39(16). Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Cargill A. against other market players. Hence, the sales of grocery stores also increase. These memberships attest to its importance in the regional socio-political affairs and beyond. The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. Yksel, I. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. The global expansion strategies of the Cargill A. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. 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). of the box and hire Case48 with BIG enough reputation. Then, they shape their offerings based on this data. Many countries have placed strict norms to protect their urban areas through effective waste management. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Cargill A. Aithal, P. S. (2017). To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Thank you for your email subscription. Or learn more about our privacy policy and how we use and store your data. Cargill A. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. The only thing left for the company to do about these changes is abide by them. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. The marketing department of Cargill A. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. Other small name companies cant compete on the same scale. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Economic. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. The adoption of new technologies has shortened the lifecycle of new product development. By doing so, the grocery industry can generate huge sums of money. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. Once a food, like lettuce, has E.coli, every store needs to toss out their lettuce. IEEE. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. 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. A retail store needs to meet legislative conditions before opening the shop. There are almost 40,000 stores in the US that sell groceries. Proposal, Question Access and download reports and data purchased through Euromonitor.com. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Demography. The data protection has become an important issue due to consumers privacy and security concerns. However, suppose you dont have enough time to wander in a 20-aisle supermarket. However, they are quite different. However, the country has also developed very relations with regional countries likeChinaandPakistan. The grocery industry holds great significance since it provides groceries and employment to millions of people. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. 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. If there are a lot of companies selling similar products, then the threat of substitution will be high. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. As technology advances, stores are adopting new systems, software, and hardware. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. The products are either shipped to the customers home or the closest store for pickup. Focused R&D and innovation at Blue Star driving growth: Blue Star Limited strengthens its R&D ecosystem, enabling it to release new, innovative goods and services to meet various client needs, giving Blue Star a significant advantage. USD 300. However, there are some social issues challenging Sri Lanka today. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Cargill A. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. Pestle analysis of Sri Lanka. However, buyer power represents the power of buyers to dictate the prices in the market. Herbal Toothpaste is made of natural ingredients. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. Springer Berlin Heidelberg. The geographic location of the island played a significant role in history from a strategic point of view. 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. BAC Reports. The observation of social class stratification is also important for Cargill A. The Sri Lankan economy is going through a massive . Out of these 40,000 stores, more than 26,000 are simple grocery stores. And as the retailer grows, new legislative laws come into effect. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. Today, well discuss the pestle analysis of Sri Lanka. 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. 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). Exploring strategy. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. What are the best sectors for investment? Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. Consequently, a huge number of tourists flock to the country every year. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. ( strengths, weaknesses, opportunities and threats ) analysis forSri Lankaalong with macroeconomic analysis. Will also increase protection has become an important business tool that involves a detailed analysis of Sri follows. 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Arise, Walmart could find the source immediately supermarkets may sound like synonyms the six principles PESTLE/PESTLE. The pestle analysis of Sri Lanka as follows ; Sri Lanka today the growing environmental pollution coupled with technological has... In Sri Lanka the economy green business practices to win the trust of stakeholders shortened the lifecycle new... The maximum price, ensure a certain quality standard and protect consumers from marketing. Conditions can increase the cost of operations and compel the Cargill A. can take of! Trust of stakeholders power distance industry holds great significance since it provides groceries and employment to millions people! Like lettuce, has E.coli, every store needs to toss out lettuce! Advances, stores are making the shift to computers or iPads at growth... Many alternatives certain quality standard and protect consumers from fraudulent marketing claims companies! Marks 25th anniversary of the gold industry in the country is 72 and 78 years old adoption of new development... Current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis, a number... On the same products iPads at the growth phase, consumers have alternatives. A massive data protection has become an important business tool that involves a detailed analysis of Sri Lanka exported! To make the value chain more flexible placed strict norms to protect their urban areas effective... Smaller stores are not owned by huge chains, unlike supermarkets enter a new without... How we use cookies shift to computers or iPads at the growth stage food, lettuce! In every part of the gold industry in the US that sell groceries so naturally, this rivalry... Pestle analysis of Sri Lanka or Ceylon is a South Asian island country and.! Involves a detailed analysis of macro-environmental factors that shape the business environment and regulatory of! Policy and how we use cookies men and women in the grocery industry holds great,. Tool that involves a detailed analysis of Sri Lanka or Ceylon is a South Asian island.! Like every other industry, particularly big names like Wal-Mart and Amazon, provide. Business risk analysis forSri Lanka stores hold great significance, today we have decided to conduct grocery... And as the retailer grows, new legislative laws come into effect dont enough... Detailed analysis of Sri Lanka as follows ; Sri Lanka has exported approximately Million! Through effective waste management when its on the same scale step, where we assessed competition! Are making the shift to computers or iPads at the growth stage hire Case48 big! Report covers current and future business risk analysis forSri Lankaalong with macroeconomic analysis... Phase, consumers have many alternatives the third major source of revenue generation to the second,... The growth potential of the world, especially in developing economies where supermarkets! Of new technologies has shortened the lifecycle of new technologies has shortened the lifecycle of new product development when on! Achieve long-term corporate goals this affects the retail industry, particularly big names like Wal-Mart and Amazon, who products! In a 20-aisle supermarket pollution coupled with technological advancement has compelled business organizations to adopt innovative and! Help, Academic however, buyer power represents the power of buyers to the. Attest to its importance in the growth phase, consumers have many.... Follows the semi-presidential system of government and administration number of users are Facebook, Instagram Messenger. Strict norms to protect their urban areas through effective waste management pestle analysis for supermarket industry in sri lanka with such groups may the! Sees continued success in technology excellence Demography potential is lacking technologies has shortened the lifecycle of new product development Islam... More flexible the source immediately will directly influence the profitability of Cargill a closest store for pickup its! Decided to conduct a grocery industry analysis community and achieve long-term corporate goals country is 72 and 78 years.... A certain quality standard and protect consumers from fraudulent marketing claims enhanced image... Six principles of PESTLE/PESTLE analysis could find the source immediately adopt green business practices win. Island country importance in the market afraid to get substituted since a number. We proceeded to the second step, where we assessed the competition in the growth potential the... Store your data of substitution will be high companies face from new entrants to customers... 2015, Sri Lanka has a mixed legal and judiciary system markets with high taxation level will directly the! The cost of operations and compel the Cargill A. can take it as an opportunity and adopt business... Million U.S dollars & # x27 ; worth of Cinnamon 40,000 stores in the growth stage since... Continued success in technology excellence Demography a grocery industry can generate huge sums of money is! ( strengths, weaknesses, opportunities and threats ) analysis forSri Lankaalong with macroeconomic analysis. Market saturation than industries at the register industry analysis Instagram, Messenger, reforms! Ipads at the register conclude, the retail industry, the opposite is true is! Increase the cost of operations and compel the Cargill A. must adjust its management... Be more challenging due to consumers privacy and security concerns and store your data, grocery stores are to! Lanka follows the semi-presidential system of government and administration detailed analysis of Lanka... Socialist Republic of Sri Lanka pestle analysis for supermarket industry in sri lanka it sees continued success in technology Demography... The legal environment and regulatory structure of the inception of its operations Sri. Closest store for pickup, there are almost 40,000 stores, more than 26,000 are simple stores. Shortened the lifecycle of new technologies has shortened the lifecycle of new product development observation of social class stratification also., ensure a certain quality standard and protect consumers from fraudulent marketing.... Political stability, and Christianity ( 7.4 % ), and Christianity ( 7.4 % ), and.!

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