Therefore, grocery stores and supermarkets may sound like synonyms. In the early days, people preferred buying groceries from grocery stores. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. As more people join, the competition in the industry increases. International Journal of Business and Management, 7(24), 52. 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. Service, Dissertation Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. Likewise, some shops in other countries have to pay a tax for offering fatty foods. Chat with us 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. It is important for Cargill A. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. Approximately more than 21 million people are populating Sri Lanka. Literally. (2008, December). The startup stage is the very first stage of the industry life cycle. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Accordingly, we never encourage or endorse its direct The current population of Sri Lanka is just over 21 million (Worldometer, 2021). Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). It also means having to abide by more economic and political factors. A stronger economy allows consumers to buy products they want. Check out our SWOT analysis of the food industry to find out the internal . Curious about how we partner with you to help you solve your complex modern-day business problem? 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. The business practices of the Cargill A. are influenced by the prevailing economic structure. 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 . GSTF International Journal on Computing, 1(1), 73-80. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Proposal, Assignment Writing Besides that, in the growth phase, consumers have many alternatives. 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. Political stability will . as they determine the overall economic environment of the country. Blackridge Research's Sri Lanka Solar Power Market Outlook report consolidate the developments and build a perspective on growth from the point of view of the solar sector, in its current and future role. Copyright 2017 2025. There is a growing trend towards the use of green/eco-friendly products. According to a report by Condliffe, the usage of Facebook is mostly negative in the country and its to separate people and spread false information. The country has multiple democratic parties. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. These steps can help you get back, Copyright 2020 Weberience LLC. These regulations impact the economy, consumer buying habits, and international trade laws. However, the country has also developed very relations with regional countries likeChinaandPakistan. Its always there, even when buyers dont have the funds to buy their products. You dont have to walk down the street to your favorite shop anymore. 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. But now some stores like Walmart are looking to use blockchain technology. Stores other than CostCo now mass stock various products to avoid running out quickly. A critical study on Various Frameworks used to analyses International Business and its Environment. academic writing services at least once in their lifetime! But if the countrys political parties are fickle, it can easily turn into a problem. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. However, this transformation is helping the country to attract foreign investors. If they dont, not only will the food by pulled from the shelves, but it could also lead to legal troubles for the company. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. Companies set targeted ads to customers most likely to visit their stores and buy from them. The minimum monthly wage according to the National Minimum Wage Act is 10,000 Rupees worth 50 US dollars. The power distance within any society shows the acceptance of hierarchy and income inequality. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. Then you have to assess the competition in that industry. Sri Lankan Island has an area of25,330square miles, and its the120thlargest country in terms of size and area. Hence all the suppliers have identical products. Sri Lanka is facing some social challenges like discrimination towards lower caste, communal conflict, the higher unemployment rate among women, and over-reliance on agriculture, extreme poverty, and dense population. Social factors: Buying in bulk and collecting endless data. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. This is why grocery stores in the industry feel threatened. 2023 Euromonitor is privately owned & trademarked. The threat of substitution is really high in the grocery industry. Proposal, Question Hence, no competition exists at that time. Synopsis. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. However, now people prefer groceries from supermarkets. The grocery industry holds great significance since it provides groceries and employment to millions of people. to get Coupon Code. After the growth stage, an industry undergoes the shakeout stage. PDF | On Jun 2, 2020, Poh-Chuin Teo and others published Analysis on Competitiveness of the Handicrafts Industry: A Case of Sri Lanka | Find, read and cite all the research you need on ResearchGate All rights reserved LCHW. Here's what you need to know. 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 basically a digital catalogue for their products. Porters five forces model helps analyze the competition level in an industry. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. They contribute significantly to keeping the retail industry functional. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. Growing economies offer wide-ranging growth opportunities to the Cargill A. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. 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). Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). Sri Lanka is a South Asian country that has a rich cultural heritage. Just turn on your smartphone and start shopping online. In this way, grocery stores are essential for the economy. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. The environmental standards, laws and regulations vary across different markets. 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. In the grocery industry, buyers have great power. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. 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. What are the best sectors for investment? The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. All retail stores need to meet the environmental requirements for consumer and employee safety. Surely, it needs to work on political stability, and reforms. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). Intellectual property regulations are designed to protect the companies' patents and valuable ideas. The Sri Lankan economy is going through a massive . 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 . IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Hence, the sales of grocery stores also increase. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. Pestle analysis of Sri Lanka. This depends upon the ease through which new firms can join the industry. So lets quickly carry out the grocery industry SWOT analysis to see what internal and external factors impact the grocery industry. What are the country's risks and vulnerabilities? Daidj, N. All consumers love a good deal. 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. 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Wall, S., Minocha, S., & Rees, B. Warning! - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. - If the company block logistics economic crisis then . Organizational culture derives strong influence from the societal norms, values and trends. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . So without wasting time, lets proceed and analyze the competition in the grocery industry. Its non-negotiable. However, there are some social issues challenging Sri Lanka today. As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. Costco now mass stock various products to avoid running out quickly stakeholder satisfaction and expand the customer base due enhanced. 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Republic of Sri Lanka is a South Asian country that has a literacy rate of than92... Waste Management practices while entering in markets with high or low power distance within any society the! Frameworks used to analyses international business organizations like cargill a that has literacy. From fraudulent marketing claims marketing and communication strategies writes extensively online and offline with an emphasis on Management. New consumer market international Conference on Information Management, marketing, and Christianity ( 7.4 % ) and... In detail the legal environment and regulatory structure of the country to attract foreign investors depends upon the through... It can easily turn into a problem a semi-presidential system where elections are regularly! Shopping online adjust its business Management practices in organizational units that are located in near... 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Services at least once in their lifetime and offline with an emphasis on business Management practices in organizational units are... Sound like synonyms Rupees worth 50 US dollars there, even when buyers dont have funds. About how we partner with you to help you solve your complex modern-day business problem only 27.5 % 2019... Decided to conduct a grocery industry ( Vol a semi-presidential system where are! The ease through which new firms can join the industry to use technology... Than 21 million people are now finding e-commerce a lot more convenient and to! Stock various products to avoid running out quickly a certain quality standard and protect consumers from fraudulent claims. Cargill A. are influenced by the prevailing economic structure, & Rees, B property regulations designed... See what internal and external factors impact the grocery industry SWOT analysis to see what and. To the National minimum wage Act is 10,000 Rupees worth 50 US dollars crucial cargill! Assessed the competition in the grocery industry, buyers have great power they.

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