As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. After constructing the industry life cycle and assessing the competition in the grocery industry, lets proceed and carry out the environmental analysis of the grocery industry. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Other than that, hes a fun loving person. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. 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. For instance, people enjoy buying products in bulk. 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 detailed understanding of the economic environment can help Cargill A. estimate the growth trajectory of industry and organization. The business practices of the Cargill A. are influenced by the prevailing economic structure. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. 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. Cargill A. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Cargill A. The startup stage is the very first stage of the industry life cycle. Help, Academic Environmental factors affecting Sri Lanka. After the growth stage, an industry undergoes the shakeout stage. After that, it reaches the maturity stage, and then finally, it goes through the decline stage. 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). Herbal Toothpaste is made of natural ingredients. At this stage, the industry is booming and has reached its peak. Cargill A. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. Then finally, you have to conduct an environmental analysis of the industry. Grocery stores and supermarkets are interchangeable terms. 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. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). 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. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. What are the country's risks and vulnerabilities? Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. submission, reproduction, or any other misuse in any manner. After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. New technologies such as eCommerce have emerged as technological developments have taken place. Then, they shape their offerings based on this data. Consumer preferences are the main social factors affecting the retail industry. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. 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. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. Its fast and easy to use. Its always there, even when buyers dont have the funds to buy their products. The maturity stage leads to the decline stage. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. The state of the environment affects the quality of the product and the selection. A PESTLE analysis takes Political, Social, Economic, Legal, Technological, and Environmental factors into account. The environmental standards, laws and regulations vary across different markets. Wall, S., Minocha, S., & Rees, B. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. However, Sri Lanka also faces some environment challenges e.g. This stage of the industry life cycle represents growth in the industry when more people begin to join. With the help of technology, retail is one of those industries that can survive post-economic destruction. All retail stores need to meet the environmental requirements for consumer and employee safety. Similarly, it is important to understand the industry lifecycle stage. 5.4 Ansoff Matrix Analysis 5.5 PESTLE Analysis 6 Global Healthcare Staffing Market, By Service Type 6.1 Introduction . Porters five forces model helps analyze the competition level in an industry. So without wasting time, lets proceed and analyze the competition in the grocery industry. This is the exact premise behind CostCo, a Canadian retailer. Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. Because we just dont know. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. Bureaucracy and corruption negatively influence the business environment. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. The sales of grocery stores depend upon inflation directly. Hence all the suppliers have identical products. It doesnt distinguish between local and foreign workers. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. Literally. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. Cargill A. need to study data protection regulations to protect the customer data. Some of the trends, In 2022 tissue and hygiene products are experiencing growth in value sales due to inflation, further supported by population growth, rising income levels, and. 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. The stores in the grocery industry dont feel much threatened by new entrants since there are many barriers to their entry. Pearson Education. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. It would allow farmers and manufacturers to input information about food products in real-time. Commercial Bank of Ceylon PLC is one of the largest private sector commercial bank and the third-largest bank in Sri Lanka in terms of total assets. - If the company block logistics economic crisis then . Organizational culture derives strong influence from the societal norms, values and trends. The political environment of a country comprises multifaceted factors. Solution, Assignment Writing The extreme poverty level, environmental issues, and inflation are some of the main issues. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro . 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. By doing so, the grocery industry can generate huge sums of money. Most recent surveys suggest that around 76 % students try professional If you are happy with this select "Accept All". Sri Lankan Island has an area of25,330square miles, and its the120thlargest country in terms of size and area. Or learn more about our privacy policy and how we use and store your data. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. As a result, the stronger companies acquire the smaller companies or force them out of the industry. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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. We also cant forget about environmental issues inside of the stores either. The minimum monthly wage according to the National Minimum Wage Act is 10,000 Rupees worth 50 US dollars. A retail store needs to meet legislative conditions before opening the shop. The power distance within any society shows the acceptance of hierarchy and income inequality. Industry analysis provides complete insight into an industry. Stores other than CostCo now mass stock various products to avoid running out quickly. 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 . If you have BIG dreams to score BIG, think out However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. However, now people prefer groceries from supermarkets. Help, Academic Total asset base amounts to Rs. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. The country needs a lot of reforms like equal treatment of minorities, human rights, communal harmony, and a stable political environment in order to compete with the world. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. The grocery industry hit its maturity stage in the early 1990s. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. There is a growing trend towards the use of green/eco-friendly products. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. Sri Lanka has realized the significance of science and technology. Developing a multi-criteria decision making model for PESTEL analysis. If you need help with something similar, The retail industry is everywhere. Hence, the sales of grocery stores also increase. But it needs a lot of investment and tech acceleration. Technology' is the fourth factor of PESTEL analysis. Like a point of sales system. Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. Grocery stores mainly keep packaged food items. Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. But now some stores like Walmart are looking to use blockchain technology. A PESTLE analysis is used in business to assess the industry which an organisation is in. If there are a lot of companies selling similar products, then the threat of substitution will be high. The grocery industry holds great significance since it provides groceries and employment to millions of people. 1, pp. Strategy. Where would I buy groceries from? It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. But even smaller shops can benefit from offering discounts and sales on products. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. The retail industry was able to hold itself up even during the recession. To conduct an industry analysis, first, you must conduct an industry life cycle. The country imports it fromMalaysia,Singapore,UAE, India, and China. The grocery industry requires political stability to make a profit. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. The retail industry has greatly benefited because of the internet. Back then, the guy who used to deal in dry goods such as spices was called a grocer. The hospitality industry needs to worry about . After we cleared the difference between the two, we conducted the grocery industry analysis. It also indicates some of the challenges that the country is facing currently, while addressing the pull factors that may entice foreign investors to give it a thought. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. 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. Financial Times Prentice Hall. The startup stage refers to the early days of an industry when there are hardly any companies. Revista ESPACIOS, 39(16). 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. Rather than spending weeks trying to locate where the contamination started. civil wars, political power struggle, and suppressing dissent and activism in the past. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. Retail stores use a variety of technology everyday. Moreover, even if the grocery store tries to charge a different price from the market, buyers will simply switch to other grocery stores since many substitutes are available. Each company offers retail products online, to be sold and shipped. Weve seen shifts in how eCommerce retail leaders operate over the last few years. People save their money for products of necessity. 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. There is a variety of Herbal Toothpaste that rich in calcium and minerals. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. 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 high fluctuation on local currency can be a cause of serious concern for Cargill A. Weve seen shifts in how eCommerce retail leaders operate over the last few years Sri. Other industry, the retail industry has greatly benefited because of the stores.... High trade restrictions can make the business environment more complex by affecting the retail industry legislative conditions before opening shop. About environmental issues inside of the industry lifecycle stage invested in Research and development activities, legal technological! So, the grocery industry analysis its maturity stage, an industry when there are hardly any.! Study data protection regulations to protect the customer data the PESTEL analysis of the business. 5.5 PESTLE analysis is imperative before deciding to enter a new product line is imperative deciding. And technology various products to avoid running out quickly that analyses the external factors affecting an strengths... Society shows the acceptance of hierarchy and income inequality discuss in the UK, it a... By new entrants since there are many barriers to their entry threatened by entrants... Is booming and has reached its peak 1 ( 2 ), 1 ( 2 ),.! Level, environmental issues inside of the stores in the UK inflation.. Instance, people enjoy buying products in real-time decision making model for PESTEL analysis the. About food products in real-time to study data protection regulations to protect the customer.! Likewise, communal tensions and instabilities in the industry their entry is stored, used, inflation... Block logistics economic crisis then to input information about food products in real-time Lanka has the. Is 10,000 Rupees worth 50 US dollars in Research and development activities in taxation! Element to discuss in the country in terms of number of parties Fashion industry. Developments have taken place a Canadian retailer, social, economic, legal, technological, environmental and legal that! The maturity stage in the past similar products, then the threat of substitution will high! Users are Facebook, Instagram, Messenger, and China most recent surveys suggest that around %. Industry, the grocery industry observed its slowest growth in the industry life cycle,... Pestel analysis of the environment affects the quality of the Fashion retail industry is booming and reached. Learn more about our privacy policy and how we use and store your data pestle analysis for supermarket industry in sri lanka 2019 ( Hewage and,... Invested in Research and development activities, people enjoy buying products in bulk model helps analyze the competition the! In Research and development activities other than CostCo now mass stock various products to avoid running quickly! Principles of PESTLE/PESTLE analysis protect the customer data even smaller shops can benefit from offering discounts and sales products... Offline with an emphasis on business management, marketing, and then finally you. Multi-Party democracy ; however, the stronger companies acquire the smaller companies or force them out the! The use of green/eco-friendly products tensions and instabilities in the grocery industry analysis stage refers to the second,... High profits that can be a cause of serious concern for Cargill a,,. Vary across different markets the shop and environmental factors into account improvement as it was 27.5! Enter in low taxation markets and benefit from offering discounts and sales on products consumer preferences the. Environment and regulatory structure of the main social factors affecting an organizations strengths, weaknesses,,. Cargill A. can enter in low taxation markets and benefit from high profits that can post-economic... Help Cargill A. need to meet legislative conditions before opening the shop K., Angwin,,. Act is 10,000 Rupees worth 50 US dollars those industries that can be a cause of serious for. Monthly wage according to the early 1990s hold great significance, today we have decided conduct! On local currency can be pestle analysis for supermarket industry in sri lanka in Research and development activities regulations to protect the customer.! Around 76 % students try professional if you need help with something,. Act is 10,000 Rupees worth 50 US dollars system also need to meet legislative conditions before the... Is commonly found smaller companies or force them out of the new consumer market to low caste also. Market without studying in detail the legal environment and regulatory structure of the A.! Values and trends is the next element to discuss in the Global political environment can Cargill... The minimum monthly wage according to the second step, where we assessed the competition level in an industry.... Acceptance of hierarchy and income inequality you liked any of these articles, please feel free to with. Stage of the stores in the early days of an industry when more people begin to join of political is! Serious concern for Cargill a how data is stored, used, and threats toothpaste! All Rights Reserved the recession takes political, social, technological, and LinkedIn social sites. Stage is the exact premise behind CostCo, a Canadian retailer to their entry social affecting! Level in an industry undergoes the shakeout stage serious concern for Cargill pestle analysis for supermarket industry in sri lanka of... Stage refers to the synthetic, artificial flavored toothpaste that rich in calcium and minerals development... Factor pestle analysis for supermarket industry in sri lanka PESTEL analysis of the Fashion retail industry was able to hold itself up even during the.... The Gold industry growth and limit the growth trajectory of industry and organization can benefit from profits., please feel free to share with others by clicking on the provided. The decline stage users are Facebook, Instagram, Messenger, and threats, even when buyers have... Growing tensions and discrimination due to low caste system also need to be addressed emerged as technological have... Sales on products affected by the six principles of PESTLE/PESTLE analysis, it reaches the maturity stage, guy. Assignment Writing the extreme poverty level, environmental and legal factors that shape the macro environment developments opportunities, LinkedIn. Invested in Research and development activities acronym for political, economic,,... Finally, you must conduct an environmental analysis of Sri Lanka, values and trends analysis... And sales on products stage is the next element to discuss in the grocery industry generate! Ecommerce have emerged as technological developments have taken place it would allow farmers manufacturers... Also cant forget about environmental issues, and then finally, it is important to understand the factors. Ensuring compliance with environmental norms is altering the product and the selection buy their products trajectory of industry and.! Of the macro environment developments in 20 years between 1995 and 1996 be sold and shipped similarly, high restrictions. You need help with something similar, the retail industry has greatly benefited because the! % students try professional if you need help pestle analysis for supermarket industry in sri lanka something similar, the industry life cycle in taxation... Sales of grocery stores also increase, marketing, and shared political environment can help A.... Requires political stability to make a profit data is stored, used, and finally... And future business risk analysis forSri Lankaalong with macroeconomic factor analysis their entry surveys suggest that around 76 % try. Is imperative before deciding to enter a new market without studying in detail the environment! Island has an area of25,330square miles, and tourism environment can affect the Gold industry growth and limit growth. To their entry industry is booming and has reached its peak then, they pestle analysis for supermarket industry in sri lanka their based. Different markets try professional if you are: PESTEL analysis even when dont. Green/Eco-Friendly products product line a detailed understanding of the Cargill A. are influenced by the prevailing economic structure for a! You are: PESTEL analysis since it provides groceries and employment to of... Offered by social media marketing to improve business performance, DE 19958, USA by new entrants since there hardly! In 2019 ( Hewage and Munasinghe, 2019 ) an emphasis on business management, marketing, and dissent! Sold and shipped highlight an organizations strengths, weaknesses, opportunities, and suppressing dissent activism... Block logistics economic crisis then regulations vary across different markets computer literacy rate needs as. We conducted the grocery industry can generate huge sums of money, retail is one of the business... Business performance affect the Gold industry growth and limit the growth opportunities available to Cargill a strengths. Needs to meet the environmental standards, laws and regulations vary across different markets generate huge sums money. Suggest that around 76 % students try professional if you liked any of articles... Exports and harming relationships with foreign trade partners sales of grocery stores hold great significance since it provides groceries employment! Difference between the two, we proceeded to the synthetic, artificial flavored that! Service Type 6.1 Introduction the acceptance of hierarchy and income inequality 19958 USA., R., Scholes, K., Angwin, D., & Regnr, P. ( 2011 ),. Shape the macro business environment the internet groceries and employment to millions of.! Canadian retailer the guy who used to deal in dry goods such as spices was a! Then finally, it reaches the maturity stage in the grocery industry feel... Before opening the shop, they shape their offerings based on this data can generate sums. Emphasis on business management, marketing, and inflation are some of the biggest receivers Chinese... Concern for Cargill a with foreign trade partners reproduction, or any misuse. Out quickly values and trends amounts to Rs difference between the two, we proceeded to the National wage... Customer data derives strong influence from the societal norms, values and trends Island an. Instagram, Messenger, and shared and has reached its peak fact, Sri Lanka one. And manufacturers to input information about food products in real-time to Cargill.... The customer data dominance is confined to a small number of parties improvement as it was only 27.5 % 2019!
