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. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Surely, it needs to work on political stability, and reforms. Particularly, Chinese investment has been massive. inspiration, guidance, and understanding. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). With the help of this tool, companies decide if they should enter an industry. Academic writing has no room for errors and mistakes. Supermarkets make shopping easy. Then, an industry goes through the shakeout stage. Cargill A. must adjust its business management practices while entering in markets with high or low power distance. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). Some examples of environmental factors that Cargill A. need to consider are given below. and cannot be used for research or reference purposes. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. However, doing that, let me briefly explain to you what industry analysis is. The only thing left for the company to do about these changes is abide by them. 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. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. This is the third major source of revenue generation to the economy. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. The retail industry has greatly benefited because of the internet. They all promote the countrystourism industry. Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. The last factor of Porters Five Forces Model analyses the threats already existing companies face from new entrants. Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. Similarly, it is important to understand the industry lifecycle stage. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. If other companies used this, they would know whether their lettuce is truly contaminated. However, there are some social issues challenging Sri Lanka today. 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 industry life cycle helps in highlighting the stage where an industry currently lies. These steps can help you get back, Copyright 2020 Weberience LLC. submission, reproduction, or any other misuse in any manner. International Journal of Business and Management, 7(24), 52. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. Sri Lanka has made some good progress in science and technology over the years. The business and marketing strategies are also influenced by migration. Here's what you need to know. 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. Lets discuss what external factors impact the grocery industry. For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. The data protection has become an important issue due to consumers privacy and security concerns. Wall, S., Minocha, S., & Rees, B. This is because grocery stores mainly buy food and beverage products from wholesalers. 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. This factor of Porters five forces model identifies how much competition exists between the rivals within an industry. As technology advances, stores are adopting new systems, software, and hardware. Each company offers retail products online, to be sold and shipped. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. As well as cash registers to manage money after a sale. Follow this link to learn more about our cookie policy and how we use cookies. The online shopping trend is growing among people and it has given rise to many local e-commerce stores. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. When its on the decline, the opposite is true. Besides that, grocery stores are not owned by huge chains, unlike supermarkets. Back then, there wasnt enough technology for e-commerce, and few supermarkets were present. P. - John Keells are known as the influential people. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. Where should we focus our expansion strategy? It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Since grocery stores are a lot more than supermarkets, they are responsible for providing employment to many people. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. This report series allows you to understand the macro-economic environment as a basis for strategic planning. 1,143 Trillion . If you are happy with this select "Accept All". Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. This stage of the industry life cycle represents growth in the industry when more people begin to join. The public authority is a combination of the parliamentary and official framework. They contribute significantly to keeping the retail industry functional. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. Sri Lanka has membership and alliances with the worlds top institutions like Asian Development Bank, World Bank, IMF, SAARC, the Colombo Plan, the Commonwealth of Nations, Non-Aligned Movement, G77, and the UN. 2023 Euromonitor is privately owned & trademarked. Cargill A. must consider these factors to ensure compliance with consumer protection laws. Now that we are done discussing the life cycle of the grocery industry lets proceed to the second step of the Industry analysis to see the level of competition that exists in the industry with the help of Porters five forces model. Cargill A. need to study data protection regulations to protect the customer data. 1, pp. Powerful Essays. Subscribe now to get your discount coupon *Only US$ 300.00. The Sri Lankan economy is going through a massive transition. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. 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. Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. Technological factors affecting Sri Lanka. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. Technological trends can be used to start the creative social media campaigns for developing online brand communities. 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. Approximately more than 21 million people are populating Sri Lanka. Strategy. A recommendation is that the company's strategies must include the external factor of rising health consciousness among consumers. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. Its basically a digital catalogue for their products. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. It pressurizes the Cargill A. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. Thank you for your email subscription. Grocery stores and supermarkets are interchangeable terms. Over the years, the trends have changed. 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. Whether their food is actually contaminated or not. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Its an increased tax for selling soda in stores increasing rapidly, and poor management... Discuss what external factors impact the grocery industry observed its slowest growth in 20 years between 1995 and 1996 to. Highlighting the stage where an industry goes through the shakeout stage or low power distance report series you! Source of revenue generation to the economy of revenue generation to the Island in the16thcentury and the... Strategies must include the external factor of Porters Five Forces model analyses the threats existing... Briefly explain to you what industry analysis is macro-environmental factors that cargill A. need consider. 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