PESTEL. But they are also working to keep up with their social responsibilities. pestle analysis for supermarket industry in sri lanka. Sri Lanka has realized the significance of science and technology. This paper attempts to identify the key factors influencing the retention of insurance agents in Sri Lanka. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. Study for free with our range of university lectures! PESTLE Analysis of Sri-Lanka Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, is a country in South Asia. The banks collect customer information and their details. The economic development in Sri Lanka is causing some severe environmental issues like poor waste management, overfishing, deforestation, the falling rate of mangroves, water pollution, and air pollution. Economy forces. There are laws to ensure the safety of the money of the general public. If you're in the Commodities industry in Sri Lanka, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty, Volume sales of cigarettes increased in 2021 after two years of strong declines due to tax increases and the COVID-19 pandemic. The lifestyle of people is changing rapidly. Porter's five forces factors are consists of competitive rivalry, the threat . PESTEL analysis for Glomark, SWOT analysis for Glomark, current marketing mix of the Glomark are discuss here. Economic forces that regulate the exchange of materials, money, energy and information. Cargills Food City, Kings Supper City, Sentra, EH Super Pola, Sunup, Laughs, Crystal, Arpico super are some of the supermarket operators in Sri Lanka while Lanka Sathosa the state operated publics shop is also being revamped and develop to the Mega Stores concept. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. There are2 types of environmental factors: External: The economy In a bad economy, even a well-run business may not be able to survive. Available at: https://www.marketingtutor.net/pestle-analysis-of-banking-industry/ (Accessed 24 August 2022). Telecom Outsourcing Market Telecom Outsourcing Market - Massive Growth Ahead| Ericsson, IBM Corporation, Cisco Systems This has been because of the gradual improvement of the global economy in the year concerned with sharp recovery of the Asian markets improving the free movement of commodities. 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. Weakness Customer perceived image of premium pricing, high quality requirements, complex vertical decision-making, high plant depreciation, maintenance cost, Limited supplier base, limited distribution in other parts of the country apart from western province, concentration on domestic market segment alone. Being competitive and looking at the best competitive strategy by looking at the SWOT analysis it is evident that opportunity are opening up for Keells Super for expansion and increase of market share indicating best approach would be aim at a broader target a mass market strategy best suits as opposed to a focus. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. Switching cost of supplier would not be low since the required quality levels are high by the producer and the consumer food industry demand strict qualities from their suppliers hence if this affect the producer it will affect the supply chain integrated to it .Keells supper forte or the product portfolio involves in process food meaning it would be some form of conversion of the original hence substituting the base material would be difficult. When we ask consumers what they would do if the brand they are looking for is not available 65 percent said they will go to another shop says Dwight Watson, Ac Nielsen. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. It gives people the confidence to deposit their money or take loans from the bank. The supermarket chain use advance state of the art systems like Motorola MC3000 mobile computers for maintaining inventory with time saving and efficient stock reconciliation. Buyers will not be encourage to produce FMCG as they are freely available and lot of substitutes would also will be there. Hence Cost leader ship, and differentiation competitive strategy appears to be suited better, looking further at the SWOT Keells Super has a considerable threat for having and maintain a cost leader ship with supplier high bargaining power, commodity and raw material price increase, sustainability investment cost, and imitations coming into the market, having economies of scale is not so promising with rising energy prices, indicates best competitive strategy for keells Super would be Differentiation. He holds an MSc in Tourism & Hospitality from the University of Sunderland. PEST Analysis is a very advanced way to determine the external parameters that affect a business or industry. PESTLE Analysis of The Retail Industry The retail industry is comprised of the process where retailers sell their final products and services to the end consumers. It examines the political, economic, social, technological, legal, and environmental elements of the operating marketthat may have either positive or negative effects on your company or organization. Other than that, some financial bodies take care of the money flow and risk associated with the banking system. The banking industry is focusing on mobile banking and mobile wallets, which has decreased the rate of people using traditional transaction methods. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. To examine the external environment, the researchers employed the PEST analysis method which evaluates the political, economic, social and technological environment in which industry. Capacity increase is possible for keells supper if required for the north and east new markets but existing capacities of keells could service through these markets. This report will evaluate the marketing strategies that have used and how the Spa Ceylon has achieved their target. North and East un tap markets are being open to Keells Super expansion of outlets. Together they have received prestigious awards such as prestigious industrial Excellence award Gold award for manufacturing large category. Customers are getting attracted to better interest rates and customer service. The banking industry is very much related to the economy of a country. Therefore, several laws govern the operations of the banks. This is possible since Keells Super sell FMCGs and competitors could substitute these products, however the competitor might have to out run the keells supper brand equity and the production capacities which renders benefits of economies of scale. Admissions Open. About Us. [online] notesmatic. However recent indicators show a sharp decline in consumer spending power due to constant inflations prevailing company will have to watch out for these. Pizza Market Analysis. Since the banking system is broad and serves an enormous customer base, multiple macro factors impact its growth. 5 GAP Analysis Tools to Help a Business Analyst in Strategic Management GAP analysis tools include SWOT and PEST analysis, the Fishbone diagram, McKinsey 7S, and the Nadler-Tushman Congruence Model. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' If you wish to access remote files, head to https://www.edrawmax.com/online/ and log in using your registered email address. Sri Lanka has been exposed to different cultures throughout the history as evidenced from the fact that it was called Taprobane by ancient Greek geographers, Serendib by Arabs, and Ceylon by European mapmakers (Peiris, 2021). The people and their buying habits and preferences influence the banking industry. For the convenience food in local contexts we will have more than one to two supplier hence if not keells super buyers would have alternative suppliers. So in this paper we will discuss the external environment of Coca-Cola and how the various factors of external environment affects the functioning of the company and how the company responds to these uncertainties. Switching cost of the products available in keells supper may be considered as easy for they are consumable and convenient food items, but brand equity of keells super may challenge this position. JKH is also the first Sri Lankan company to obtain a listing abroad and is quoted in the Luxembourg stock exchange. PESTEL analysis is also a very popular tool among management consultants to help their clients develop innovative product and market initiatives, as well as within the financial analyst community, where factors may influence model assumptions and financing decisions. When the economy falls, the banking industry gets negatively impacted because economic conditions like inflation and recession influence the individual's spending habits. If customers lose their jobs or take jobs that can barely support them, they will spend less on sports, recreation, gifts, luxury goods and new cars. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. (JKH PLC N A). Bargaining power of the suppler appears to be high for keells supper since they are core industries and premium brands are specific about their supplier and quality of the item. Surely, it needs to work on political stability, and reforms. Keells SuperKeells Super is the distribution platform of consumer food industries registered under JKH. With PESTLE analysis the company's management can identify the major segments which the company need to focus. A PESTLE analysis is a useful tool for understanding the 'big picture' of the environment in which an organisation is operating. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! It has very close cultural interactions with India as well. Social factors impact the banking industry as banking services involve public dealings. SLIM-Nielson Peoples award 2009- Most popular FMCG Beverage brand of the year. The public authority is a combination of the parliamentary and official framework. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. But it needs a lot of investment and tech acceleration. Thus, the number of people choosing to take banking services is also increasing, ensuring industry growth. D. Chaired Professor of Management Science INSEAD (Singapore & Fontainebleau France) www . Country Profiles examine the economic and political trends in 210 countries and associated regions, serving as a one-stop-shop for data and analysis on the economy, political landscape and the business environment. The Keells Super is also equipped with the range of products from the convenient food to cold food, canned food, carbonated beverages, and cold confectionaries items, and is backed by the high level of aggressive advertising providing high level of product differentiation. The second international airport also will be set up in the south Hambanthota district which would facilitate international trade. Sri Lankas top main exports are ladies undergarments and tea. Threats of substitute products. Our site uses cookies to improve functionality. The companys retail outlets have the opportunity for expansion. 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. PESTEL Analysis, SWOT Analysis and Risk Analysis of Sri Lanka Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, is an island country in the northern Indian Ocean off the southern coast of the Indian subcontinent in South Asia. They are also taking part in environment-friendly projects and keeping their locality clean. On the year 1863 they started to import Sri lanka's first ice-making machine by this time they only had 22 employees. Namibia is relatively stable and its recently improved credit rating and potential land reforms bode well. This mindset of using less cash is helpful for the banking industry. The foreign investors may feel reluctant to invest due to the change in currency conversion rate, thus, affecting the bank's business. Always keeping abreast of the industry through strategic investments in state of the art food processing technology and constant R & D orientation, companywide quality control system such as ISO 22000 certification, which has transformed the KFP PLC to the market leader it is today. 1. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. They have installed ATMs and opted for mobile banking services so that the customers do not have to arrive at the branch for small transactions. Pestle analysis of Sri Lanka. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. Air Potato Vine Poisonous To Dogs . Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. Unemployment is particularly high for women and youth. However, they are tied to privacy and consumer laws, which prevent them from sharing any such personal data of the customers. The banking sector is helping the small business and small-scale industries to grow. However, Indian and Sri Lankan cultures are almost the same. The banking sector and economy are tied to each other intricately. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. This agricultural and farming industries leading to backward integrations with grocery industry which has influence the above Mega Stores concept and consumer products FMCG, and convenience food and frozen confectioneries which have shown huge potential in becoming one of the lucrative industries encouraging large corporate players JKH investing in this area. 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). It Will Help u out in finding data and copying also;) . How to Do a PESTEL Analysis in EdrawMax, 2,027,667 (commercial banking industry in the USA). Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). National Productivity Merit award. Sorry, preview is currently unavailable. In addition to that, report contents the macro and microenvironment factor analysis as well Internal factors and SWOT analysis of spa Ceylon. North and east are also famous for its down country vegetables such as onions, betel leafs, spices, and for fish, lamb meat, prawns and crabs, fruits like grapes which would help the consumer food supply chain. Bar-coding, loyalty cards to retain customer loyalty. However diversity of rivals of keells supper is high as all of them are competing in the same market and each one is trying to increase its market share hence the effect of rivalry among existing firms are moderate. The PESTEL/PESTLE Analysis model is a tool for managers to understand the influence of the external environment on businesses. Pizza hut company analysis by api.3m.com . Looking at the Porters approach to industry analysis it is clear that Keells Super competiveness in the industry is considerably high since three out of five f forces for being competitive are in favor of the company, being a Entry barrier, ability to face the substitute challenges, and having supplier bargaining power on a manageable levels increase the competiveness of the supermarket chain, further the rivalry among competitors being moderate, with suppliers bargaining power needs to be address as issues for competiveness of the firm. PESTLE Analysis of Banking Industry | Marketing Tutor., [online]. And tax exception for industrial plants, expand into Maldives, Seashells, as a Retail outfit. The journey of KP began in 2001 as an independent . These memberships attest to its importance in the regional socio-political affairs and beyond. Threat of New Entrants will add new capacity also the new entry would have a desire to gain market share and substantial resources. Political stability creates the perfect environment for the banking business expansion. Synopsis Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. Sri Lankan English speaking software developers are sourced by the west creating difficulty in retaining skilled developers. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). Access to distribution channels could be considered low as the keells supper has on 46 super markets compared to its competitor Cargills. The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. KIDS PARADISE is a Pre-school, Daycare and an Activity Centre. Head to the Template section on the left and type 'PESTEL Analysis' to see all the pre-built PESTEL Analysis templates like Netflix PESTEL Analysis, Amazon PESTEL Analysis, IKEA PESTEL Analysis, and more. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Environmental factors affecting Sri Lanka. Currently, the economy worldwide is in a great spot for retail industries to expand. Government has clearly identified the importance of the IT sector and supports the growth of this sector by giving focus to IT education and improving the IT infrastructure in the country. DOWNLOAD THE FREE GUIDE It allows a company to form an impression of the factors that might impact a new business or industry. Tariffs, taxation, and business restrictions can impact the banking industry. PESTEL analysis is mainly the assessment of macro environment factors. Other than that, hes a fun loving person. Enter the email address you signed up with and we'll email you a reset link. The retail industry was able to hold itself up even during the recession. EdrawMax has thousands of free templates. With the identification of above criteria, company decided to enter for the modern trade industry of Sri Lanka with retail supermarket chain. After technological advancement, the model of banking is changing. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. Multinational firms like Nestl have a greater risk of production bottlenecks because of governmental policies and changes. Academia.edu no longer supports Internet Explorer. The country is drawing a lot of foreign investments every year. 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