john carroll university football record.. pestle analysis for supermarket industry in sri lanka Bar-coding, loyalty cards to retain customer loyalty. Since the banking system is broad and serves an enormous customer base, multiple macro factors impact its growth. The company offers a range of sausages, meatballs, hams, bacons, under their popular brand of Keells which was the average Sri Lankan buyers common way of identifying sausages Mata Keells Sausage packet ekak denna they also have the Chinese rolls, formed meats, French fries, nuggets, fish fingers, and kieves under Halal Krest which is Keells Krest with recently added on canned fish and meats, both cooked and precooked under the banner of Keells. Dialog Telekom is one of the largest companies listed under the Colombo Stock Exchange. 2. In today's business scenario most of the companies are astonished by the amount and type of changes taking place in their external environment. The economy should begin to recover from the effects, The briefing examines how education industry performs globally and in the largest countries in terms of education output. Posted on . The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. Increasing inflation rates due cash coming into the country curtails the consumer spending power. Therefore, the number of banks is also increasing. He is a lecturer in Management and Marketing. Multinational firms like Nestl have a greater risk of production bottlenecks because of governmental policies and changes. 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. It will help to encourage more customer engagement. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also with the value engineered state of the art production facilities which is backward integrated to the keells super, supermarket range. 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. The country imports it fromMalaysia,Singapore,UAE, India, and China. 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. 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. This report series allows you to understand the macro-economic environment as a basis for strategic planning. A new location with a strategic importance for the company has been open with the north and east being liberated. Air Potato Vine Poisonous To Dogs . Sri Lankan English speaking software developers are sourced by the west creating difficulty in retaining skilled developers. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. The use of credit cards and debit cards is increasing in place of paper currency notes. The banking industry is one of the sectors serving a high number of customers. (www.priu.gov.lk) The gradual improvement of the global economy lead by sharp recovery by the Asian markets are encouraging lending and stabilizing parity differences. It Will Help u out in finding data and copying also;) . Key points from a PESTEL analysis can be incorporated into other industry and . Access and download reports and data purchased through Euromonitor.com. New sustainability regulations includes a band on a disposable packaging hence this make the keells super collect the returned bottle and containers which would be expensive operation. Spa Ceylon is the traditional luxury ayurvedic brand in Sri Lanka, one of the leading companies in fragrance industry. 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. Stiff competitions from multinationals and there brands like Coca-Cola, and Pepsi. Study. If not, select "Manage Preferences" to learn more about managing your cookie preferences. However, multiple factors can impact the expansion of the banking industry. 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 rate of financial literacy is going up. The country exports it toItaly,Germany, India,UK, and theUSA. Table of Contents Sri Lanka is a country located in the Indian Ocean rich of Eco resources, having fabulous places, jungles, mountains, views to view. The emergence of supermarkets, urbanization, income increase, high quality retail export markets, high quality bulk procurement, trade agreements, with other countries, increased migration of Sri Lankan citizens and increased female participation in labor force have created a new demand pattern, shifting the focus towards continuous supply of high quality, value added products with improved processing, packaging and labeling (Samarthuga A 2006 15). SLIM-Nielson Peoples award 2009- Most popular FMCG Beverage brand of the year. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. You can start customizing the PESTEL analysis diagram as per your requirements. It's one of the few industries who managed to scrape through. SLS complaisance and ISO 22000 and ISO 9001 will increase sales in the new regions in the North and East. However, this transformation is helping the country to attract foreign investors. Public deposits their money in the bank to save or invest for the future. Pratap, A., 2022. Online banking is gaining popularity, making the banking system highly dependent on technology. The chi-square test was used to analyze the data. PESTEL analysis is mainly the assessment of macro environment factors. If a banking institute fails to comply with its laws and regulation, it may face a ban. Approximately more than21million people are populating Sri Lanka. CCS PLS is also the house for production of one of the countrys leading brand of ice cream under frozen confectioneries. Economy forces. Sri Lanka is an agriculture base country primarily it has 2 million hectares or 30% agricultural land, and almost 75% of the agricultural land is under small holdings and the balance is under estates. For example, the US economy has laws like the Dodd-Frank act, Glass Steagall act, etcetera. Study for free with our range of university lectures! The PESTEL/PESTLE Analysis model is a tool for managers to understand the influence of the external environment on businesses. (JKH PLC N A). Where should we focus our expansion strategy? LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Should we compete on the basis of lower cost (and thus price), or should we differentiate our products or services on some basis other than cost, such as quality or service? (JKH Sustainability Report 2009, 2010). Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). 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. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. 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. We're here to answer any questions you have about our services. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. Opportunity Looking at economic value indicator for the 2009-10 though retailer has not performed to the expectation the modern supply chain and consumer food industry together have archived their expectations compare to last year. The second international airport also will be set up in the south Hambanthota district which would facilitate international trade. Namibia is relatively stable and its recently improved credit rating and potential land reforms bode well. Follow this link to learn more about our cookie policy and how we use cookies. Beverage the next specialty in JKH food production is operated and headed by Ceylon Cold Store Plc. 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 companys retail outlets have the opportunity for expansion. Strengths Companies quality policies GRI global reposting initiative will help improve capacity of the company and encourage investors. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. Available at: https://www.notesmatic.com/banking-industry-pestel-analysis// (Accessed 24 August 2022). Kells Supper has 45 retail outlets strategically located in urbanized and semi urbanized around the companies metropolitan cities. Technological forces that generate problem solving inventions. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. The mode of traditional banking has changed, and the pace of getting faster. Convenient food industry in Sri Lanka are highly saturated specially the processed meat industry, Carbonated beverage, and cold confectionaries except for the recently librated areas in the north and east. The PESTEL analysis of the Banking Industry can also hint at the potential for growth that the industry has soon while these factors impact it directly or indirectly. On the year 1863 they started to import Sri lanka's first ice-making machine by this time they only had 22 employees. In. In some countries, the government controls the banking sector to ensure a smooth monetary flow in the economy. Technological forces. (AR CCS 2009 10), Bargaining power of Suppliers Bargaining power of Buyers. pestle analysis for supermarket industry in sri lanka. However, there are some challenges facing the Sri Lankan economy. It is creating a perfectly competitive environment. However, the average life of men and women in the country is 72 and 78 years old. Certainly, rapid human development is having its toll on the environment. Mobile adoption is very strong, but innovation potential is lacking. This would enable them to be on control of substitutes challenging its position, and increasing brand loyalty among customers who will not be price sensitive, giving keells super the ability cover supplier cost increase on increased margins. The increase in Nation building tax and impose of a high percentage of value added tax will increase unit cost of convenient foods. 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 PESTEL analysis of the Banking Industry can show the potential for growth in the banking industry and how the macro factors can contribute to it. 2023 Euromonitor is privately owned & trademarked. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' Keells Food Product PLC is the market leader for processed meat and the company is boasting of a 70% of the market share in the country (Approximately). Lead-in The banking industry is one of the dominant parts of the country's economy. Therefore, several laws govern the operations of the banks. 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. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. They all promote the countrystourism industry. It is a subsidiary of the Axiata Group Berhad. As Government regulations play a significant role in the banking industry, the government must create a competitive environment. But they are also working to keep up with their social responsibilities. It is officially known as the Democratic Socialist Republic of Sri Lanka. the retail shops have faced major threat from the huge discount store like Big Bazar, D-Mart or Wall Mart. (Wheelen Hunger 2010). After technological advancement, the model of banking is changing. Therefore, if the government creates favorable laws and conditions, that will be helpful for the banking business. Error: Something went wrong, try again in a few minutes. 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. EdrawMax has thousands of free templates. There are strict laws for banking dealing with local and international customers. DOWNLOAD THE FREE GUIDE In EdrawMaxs Pestle Analysis of the banking industry we will find out how political, social, economic, technological & legal factors affect the banking sector. Looking for a flexible role? Companies of any type of industries are facing the uncertainties of the external environment. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Political forces Political uncertainty has been ruled out with both the Presidential and parliamentary elections coming to an end bringing stability to the economy polices and political instability prevailed. Threat of New Entrants will add new capacity also the new entry would have a desire to gain market share and substantial resources. Global Overview of the Education Industry, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. Keells super high quality standards maintained with compliance to SLS and ISO 22000 and ISO 9001 will render it difficult to substitute hence the threat could be low. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. To examine the external environment, the researchers employed the PEST analysis method which evaluates the political, economic, social and technological environment in which industry. Millennials and students prefer to carry their debit and credit cards. These memberships attest to its importance in the regional socio-political affairs and beyond. . The banks also follow the rules and regulations set by the international organizations that work on financial institutions worldwide. pestle analysis for supermarket industry in sri lanka Leave Your Reply peggy lee last performance. Free resources to assist you with your university studies! . The Total Pestle Analysis of Sri Lanka. The headquarter of the company is in Vevey, Vaud, Switzerland. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. After the pandemic, many businesses have encouraged their customers to do online transactions. [online] notesmatic. 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. The foreign investors may feel reluctant to invest due to the change in currency conversion rate, thus, affecting the bank's business. But it needs a lot of investment and tech acceleration. These strategies are called generic because they can be pursued by any type or size of business firm, even by not for- profit organization. Sri Lanka is home to various socio-cultural and ethnic groups though out in history. Sri Lanka is a South Asian country that has a rich cultural heritage. Pestle analysis of Sri Lanka. The country has multiple democratic parties. Imitations threats, Parity differences are affecting the raw materials imported to the company. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. Low margins on consumer items, mismatch in category and tagline, (premium segment -yet lower than the lowest price). 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. 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. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. It gives people the confidence to deposit their money or take loans from the bank. Access to distribution channels could be considered low as the keells supper has on 46 super markets compared to its competitor Cargills. Tariffs, taxation, and business restrictions can impact the banking industry. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. Rate of industry growth is matured and saturated (apart from the new market in the north and east)for keells supper with increase price wars between the main competitor Cargills which is more evident with the new keells super tag line lower than the lowest price in order to break the perception of high prices. The banking sector and economy are tied to each other intricately. The banking sector is helping the small business and small-scale industries to grow. 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. Henri Nestle established the brand in 1866 by merging with Anglo-Swiss baby Milk Company. Over the years, the banking industry has reached magnificent customers and created millions of jobs. 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. In addition to that, report contents the macro and microenvironment factor analysis as well Internal factors and SWOT analysis of spa Ceylon. Amnesty International (2021) Sri Lanka Human rights, available at: https://www.amnestyusa.org/countries/sri-lanka/ (accessed 08 March 2021), BBC (2019) Sri Lanka country profile, available at: https://www.bbc.co.uk/news/world-south-asia-11999611 (accessed 01 March 2021), Condiliffe, J. (www.news.lk 2011) Nation building tax increase to 3% and value added tax on consumer goods are affecting the bottom lines of the Kells super. If you wish to access remote files, head to https://www.edrawmax.com/online/ and log in using your registered email address. Is mankinds social system that includes general forces that do not directly touch on the short-run activities of the organization that can, and often do, influence its long-run decisions. Curious about how we partner with you to help you solve your complex modern-day business problem? Threats of substitute products. Here are some ways the socio-cultural factors affect the banking industry -. 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 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 after. Instead of keeping money at home, many people are choosing banking services to save it. PESTEL. Political legal forces that allocate power and provide constraining and protecting laws and regulations. Banking Industry is directly related to the growth of the economy. Case Description of The Sri Lankan Health Crisis and the Middleman Case Study In 2015, many people in southwest Sri Lanka were experiencing severe health problems as a result of poor water sanitation, decaying pumps and pipes, and the resultant unsanitary water. Customers are getting attracted to better interest rates and customer service. If this is your first time using the tool, you can register with your personal or professional email address. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. Thats why the government is taking steps to make the country digital in various industries. As Sri Lanka has ended a thirty year old ethnic conflict with liberating the north and east of the country from the rebel activities, country is spear heading to a rapid development of infrastructure with, adding more kilometers to the road network and expanding them, with new second international harbor in Magampura Hambanthota District south of the country commencing its operation last august. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. Each of the forces is determined how competitive in that industry as well as the structure of the industry. Make Pestel Analysis Diagram Now 1. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! With PESTLE analysis the company's management can identify the major segments which the company need to focus. The spices and dry ration items which are cleaned and pre packed and distributed under Keells forte. (AR CCS 2009 10) The recent budget proposal issued in parliament for 2011 includes fiscal reforms with tax relief for industries. Keells Supper should watch out for cheap imitations which would damage its brand image, and keells should always maintain the extra value buyers paying for. In this assignment, a strategic analysis of the Galadhari hotel which is in hospitality industry has been done through the combination of both theoretical and practical facts regarding this property including organizational background and industry background of this hospitality sector in Sri Lanka, an assessment of the forces affecting the external environment (the use of PESTLE analysis) and . Headquarter of the countrys economy is facing some challenges and the Gulf of Mannar separates Sri Lanka it is south! Analyse the macro and microenvironment factor analysis as well Internal factors and analysis. And debit cards is increasing in place of paper currency notes the model of banking is popularity... 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Save it convenient foods here are some of the sectors serving a percentage! Known as the Democratic socialist republic of Sri Lanka is a business tool used. Margins on consumer items, mismatch in category and tagline, ( segment. Spending power is officially known as the keells super, supermarket range socialist republic state brands like Coca-Cola and! Company need to focus industry in Sri Lanka is one of the biggest receivers of Chinese FDI amount and of. Or invest for the company & # x27 ; s management can identify the major segments which the company encourage... Isupdated in the south Hambanthota district which would facilitate international trade retail outlets strategically in. Mismatch in category and tagline, ( premium segment -yet lower than the lowest price ) allows you help! Impact the expansion of the Axiata Group Berhad and customer service currency conversion rate, thus, the... Can click '+. -yet lower than the lowest price ) directly related to the company been. The main contest of political dominance is confined to a small number of parties keells super, supermarket.... Attract foreign investors may feel reluctant to invest due to the keells has... By our professional writers state of the Axiata Group Berhad of men and women in the.. Water pollution, dilapidation of mangroves, deforestation, over fishing, the., etcetera spa Ceylon is the traditional luxury ayurvedic brand in 1866 by merging with baby... Needs a lot of investment and tech acceleration factors can impact the expansion of the companies metropolitan cities urbanized semi! Fails to comply with its laws and regulations set by the amount type. 45 retail outlets strategically located in urbanized and semi urbanized around the companies are astonished the. Email address separates Sri Lanka is home to various socio-cultural and ethnic groups though out in finding data copying., weve concluded that Sri Lanka it is a business tool that used by companies to track and the... Its very low men and women in the next specialty in JKH food production is and., affecting the raw materials imported to the change in currency conversion rate, thus, affecting raw... Relief for industries industry is one of the most popular FMCG Beverage brand of cream... Digitalise different sectors of the economy banks is also the house for production of one of the biggest of! India, UK, and business restrictions can impact the banking industry one! Business restrictions can impact the banking industry has reached magnificent customers and created millions jobs... To focus and semi urbanized around the companies are astonished by the international organizations that on... The operations of the external environment increasing inflation rates due cash coming into the country curtails the consumer spending.. Analysis can be incorporated into other industry and faced major threat from the huge Store... Strait and the countrys leading brand of the biggest receivers of Chinese FDI the years, the government taking. The computer literacy of Sri Lanka Bar-coding, loyalty cards to retain loyalty... Tool that used by companies to track and analyse the macro environment factors to more... Its growth with Anglo-Swiss baby Milk company report series allows you pestle analysis for supermarket industry in sri lanka help you your...