are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. You may also like reading PESTEL analysis of India and PESTEL analysis of China. 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 . So without wasting time, lets proceed and analyze the competition in the grocery industry. A high level of competition exists in the grocery industry since grocery stores are only retailers. Environmental factors affecting Sri Lanka. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. These memberships attest to its importance in the regional socio-political affairs and beyond. 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. High unemployment signals the availability of surplus labor at comparatively lower wages. Retailers who offer products online can collect data provided by their customers. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. Copyright 2017 2025. PEST Analysis: Sri Lanka. Economic. correct email will be accepted, (Approximately The retail industry is everywhere. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). High GDP also signals the consumers ability to spend more on offered products. In this way, grocery stores are essential for the economy. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. Hence, no competition exists at that time. 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. Out of these 40,000 stores, more than 26,000 are simple grocery stores. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. Developing strategic business models and competitive advantage in the digital sector. Stores other than CostCo now mass stock various products to avoid running out quickly. The high fluctuation on local currency can be a cause of serious concern for Cargill A. Help, Academic Besides that, grocery stores are not owned by huge chains, unlike supermarkets. 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. 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. 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. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. 1. Ignorance in this regard can cause undesired circumstances for Cargill A., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Cargill A. need to study data protection regulations to protect the customer data. Demography. But even smaller shops can benefit from offering discounts and sales on products. It doesnt distinguish between local and foreign workers. As well as cash registers to manage money after a sale. 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. As technology advances, stores are adopting new systems, software, and hardware. In this way, grocery stores are essential for the economy. The country has multiple democratic parties. 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. The data protection has become an important issue due to consumers privacy and security concerns. The threat of substitution is really high in the grocery industry. Sri Lanka is a South Asian country that has a rich cultural heritage. Some of the things that are the center of tourist attraction are seafood, trumpeting animals, continuous birds chirping, scenic landscape, islands, tea gardens, national parks, and UNESCOs world heritage sites. Its always there, even when buyers dont have the funds to buy their products. If there are a lot of companies selling similar products, then the threat of substitution will be high. The adoption of new technologies has shortened the lifecycle of new product development. 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 packaging is usually made up of plastic, and plastic causes environmental degradation. Its fast and easy to use. Or when a certain industry is hit harder than others. And should a problem arise, Walmart could find the source immediately. If other companies used this, they would know whether their lettuce is truly contaminated. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Likewise, the literacy rate (over 92%) is very high as well. Each country must abide by their political regulations. Hence their products are identical. As more people join, the competition in the industry increases. 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. However, there are some social issues challenging Sri Lanka today. International Journal of Business and Management, 7(24), 52. (2018). In the first stage, we constructed the grocery industry life cycle. Financial Times Prentice Hall. The revenue and profitability of any retail store are affected by government policies. For instance, people enjoy buying products in bulk. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . November 2022. Literally. Academic writing has no room for errors and mistakes. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. Back then, the guy who used to deal in dry goods such as spices was called a grocer. 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). This stage of the industry life cycle represents growth in the industry when more people begin to join. A., & Gomez, o. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. The Sri Lankan economy is going through a massive transition. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). The government should address issues like food price inflation, create and save employment opportunities in the apparel industry, protect the rights of ordinary workers, and stabilize the countrys economy. However, this transformation is helping the country to attract foreign investors. In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. When the organizations figure and execute the techniques, the political field has an immense effect on organizations' guidelines and buyers and different organizations' spending force. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Thats when shops began to establish. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! Its one of the few industries who managed to scrape through. When its on the decline, the opposite is true. Then, they shape their offerings based on this data. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). This detailed PESTEL analysis of Sri Lanka aims to explore some of the powerful macro factors that impact on Sri Lanka today and may continue doing so in the future. That doesnt mean they should avoid having a business website or showcase their products online. Grocery stores mainly keep packaged food items. Curious about how we partner with you to help you solve your complex modern-day business problem? Cargill A. should consider the following legal factors when exploring a new market. After that, the growth stage arrives. All consumers love a good deal. 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