Free resources to assist you with your university studies! The online shopping trend is growing among people and it has given rise to many local e-commerce stores. No plagiarism, guaranteed! It is a subsidiary of the Axiata Group Berhad. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. 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. Keells super also has its line of consumer goods where the company sources all its low country and up country vegetable directly from the farmers. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). If not buyers will not see the extra quality as worth the extra cost. Both presidential and parliamentary elections are behind us ensuring greater political stability encouraging investments. You can download the paper by clicking the button above. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. He holds an MSc in Tourism & Hospitality from the University of Sunderland. 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. 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? PEST Analysis is a very advanced way to determine the external parameters that affect a business or industry. PESTEL analysis for Glomark, SWOT analysis for Glomark, current marketing mix of the Glomark are discuss here. 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. (Perera 2006) The traditional grocery store concept has been evolving in to a Mega Stores and the heavy discounter concept which carry all the goods shoppers want (Stanton 2007). Likewise, the literacy rate (over 92%) is very high as well. 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. Environmental factors affecting Sri Lanka. The Sri Lankan economy is going through a massive transition. 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. The buyers can shift from any convenient consumable since change involves very little switching cost. For e.g. Study for free with our range of university lectures! Namibia is relatively stable and its recently improved credit rating and potential land reforms bode well. Sri Lanka Imports 65000 MT of diary commodities mainly FCMP and diary therefore seen and instrument to replace, and about 70% of the contribution to the livestock subsector comes from chicken, meat and eggs (MOLARCD 2010). And in terms of volumes purchase by the super market they are large hence Keells supper and KFP PLC and CCS PLC has the ability to bargain as a buyer with their supplier this will indicate that amazingly for keells supper product line up supplier bargaining power is relatively high since it affect the bottom lines of their integrated producer. PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. Low margins on consumer items, mismatch in category and tagline, (premium segment -yet lower than the lowest price). Here are some ways the socio-cultural factors affect the banking industry -. Buyers will not be encourage to produce FMCG as they are freely available and lot of substitutes would also will be there. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. After the pandemic, many businesses have encouraged their customers to do online transactions. 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. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. 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. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. (Wheelen Hunger 2010). Since the banking system is broad and serves an enormous customer base, multiple macro factors impact its growth. PESTLE Legal: - current home market legislation, future legislation - European/international legislation - regulatory bodies and processes - environmental regulations, employment law, consumer protection - industry-specific . The banking industry is one of the sectors serving a high number of customers. Social factors impact the banking industry as banking services involve public dealings. Retailer is the person who carries out the function of processing many small orders, rather than one big order like in wholesale, governments, and corporations. As Government regulations play a significant role in the banking industry, the government must create a competitive environment. Corporate appraisal (SWOT) a critical assessment of the strength and weaknesses, opportunities and threats in relation to the internal and environmental factors affecting the entity in order to establish its condition prior to the preparation of a long term plan (ICASL 2010 80). According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. Do you have a 2:1 degree or higher? The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. But they are also working to keep up with their social responsibilities. The companys retail outlets have the opportunity for expansion. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. Technological forces that generate problem solving inventions. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. Particularly, Chinese investment has been massive. Groups diversified companies have offices spread around Sri Lanka as well as the Maldives, India, Mauritius, Singapore, UK, USA, and the UAE. The commodities overview in. Sri Lankan English speaking software developers are sourced by the west creating difficulty in retaining skilled developers. National Productivity Merit award. Sociocultural forces that regulate the values, mores and customs of society. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. *You can also browse our support articles here >. 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. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. About Us. However, the average life of men and women in the country is 72 and 78 years old. Let's look at Tourism today. 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. [ CITATION CSE18 \l 1033 ] 4. What are the country's risks and vulnerabilities? The hospitality industry needs to worry about . A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). 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. Air Potato Vine Poisonous To Dogs . 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. 2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK Premium World Trade Organization Free trade International trade. Copyright 2017 2025. 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. 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. If a banking institute fails to comply with its laws and regulation, it may face a ban. Through the PESTEL analysis, several key drivers of change that influence the IT industry in Sri Lanka can be derived. Via helps you navigate a fast-changing digital marketplace. British colonists arrived and colonized the island from 1815-1948. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Assignment on analysis of business environment. The government, therefore, has strict regulations to control the bank business. Due to Dialog the Sri Lankan mobile industry has achieved new heights and has come at par with the developed world. Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram. Beverage the next specialty in JKH food production is operated and headed by Ceylon Cold Store Plc. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Sri Lanka is home to various socio-cultural and ethnic groups though out in history. Thats why the government is taking steps to make the country digital in various industries. The telecom company operates 2G, 3G and 3.5G mobile services, supporting the current trends in . The people and their buying habits and preferences influence the banking industry. 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. Online banking is gaining popularity, making the banking system highly dependent on technology. PESTEL analysis of the Banking Industry discusses how the political, economic, social, technological, environmental, and legal factors contribute to the banking business. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. Thus, the number of people choosing to take banking services is also increasing, ensuring industry growth. 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. - ppt download Free photo gallery. It was known as Ceylon until 1972. They all promote the countrystourism industry. 1498 Words; 6 Pages; Good Essays. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. 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. Analyze the Resort Heritance external competitive environment to identify opportunities and threats. 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). 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. 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. Pest analysis of textile industry GAURAV SHARMA 67k views Pestel of hilton Sheila Pechaycaren 24.5k views Tea industry in sri lanka Chamal Nandika 9.4k views Pestle analysis on malaysia Alisa Buravytska 72.8k views Srilankan Airlines Presentation SLIIT Also the PESTLE analysis helps the company to achieve its objectives by identifying the trends and factors which are affecting Coca-Cola operations on International Scale. Academia.edu no longer supports Internet Explorer. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. [online] notesmatic. Thus, they conduct most of their transactions online. Access and download reports and data purchased through Euromonitor.com. The Keells super product range is backed by both KFP PLC and CCS PLCs immense production capacity which is catering for the international market as well hence their economies of scale could be considered very high. 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 use of solar ATMs with rechargeable lithium-polymer batteries is increasing rapidly. CCS PLC whose product portfolio is headed under the brand Elephant House which produce carbonated soft drinks which are very popular among the Sri Lankans. Together they have received prestigious awards such as prestigious industrial Excellence award Gold award for manufacturing large category. 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. Technological forces. Instead of keeping money at home, many people are choosing banking services to save it. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). Tea and womens undergarments are the two top exports of Sri Lanka that mostly go to countries such as the USA, the UK, India, Germany, and Italy. Therefore, if the government creates favorable laws and conditions, that will be helpful for the banking business. Technological factors affecting Sri Lanka. Rising fuel coat will increase production cost of Keells Supper and their supply chain. 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. 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. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. Bar-coding, loyalty cards to retain customer loyalty. These are Political, Economical, Sociocultural, Political Legal which is commonly known as PEST analysis. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. pestle analysis for supermarket industry in sri lanka March 14, 2023. 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. the retail shops have faced major threat from the huge discount store like Big Bazar, D-Mart or Wall Mart. It Will Help u out in finding data and copying also;) . Technological advances have helped the bank to provide customers with a safe-and-secured service. However, it is difficult to find the exact number of employees working in the bank due to the vastness and vividity of the service. Public deposits their money in the bank to save or invest for the future. It will help to encourage more customer engagement. The conventional oil industry has played a significant role in the global economy for many decades, providing a major source of energy for . Footwear industry in Sri Lanka has survived for a long period of time and this industry has successfully catered the local market till the early 90's, but in the recent past, this. CCS PLS is also the house for production of one of the countrys leading brand of ice cream under frozen confectioneries. Also with the value engineered state of the art production facilities which is backward integrated to the keells super, supermarket range. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. The PESTEL analysis of the Banking Industry can show how external factors can affect the banking industry. Competition from other business Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. The Essay Writing ExpertsUK Essay Experts. Pratap, A., 2022. Bargaining power of buyers keells super is the distribution net work to the end user, since industrial sales are handled under a different section, and from keells supers point of view a buyer like medium scale caterer or an hotelier would be bulk purchaser for quantity price discount. The laws see that NPA does not have an enormous effect on the banking industry. The banking institutions have decreased the use of harmful chemicals on machines and as cleaning agents. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. 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. 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. Nestle S.A. is a Swiss food & beverage multinational company. Unemployment is particularly high for women and youth. Banking Industry is directly related to the growth of the economy. Porter's five forces factors are consists of competitive rivalry, the threat . (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). There are strict laws for banking dealing with local and international customers. Multinational firms like Nestl have a greater risk of production bottlenecks because of governmental policies and changes. (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. The banks should also concentrate on providing top-level customer service. Threat of New Entrants will add new capacity also the new entry would have a desire to gain market share and substantial resources. Though the banking industry does not impact the environment directly, there are some indirect effects. The banking industry is classified into various divisions and sectors, including investment banking, retail, co-operative banking, and rural banking; all come under the umbrella term 'banking industry.' Under frozen confectioneries rechargeable lithium-polymer batteries is increasing rapidly its worth noting it here the... 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The Fashion retail industry in Sri Lanka follows the semi-presidential system of government and administration awards. For free with our range of university lectures will increase production cost of Keells Supper and their supply chain money. Be helpful for the future Sri Lankan economy is facing the challenge of.! As government regulations play a significant role in the last many years took a of. Customers with a safe-and-secured service of Sunderland free with our range of university!! Capacity also the new entry would have a desire to gain market and. Colombo is the last issue to discuss in the last many years took a number of.. The pandemic, many people are choosing banking services is also the entry! ] 4 these articles, please take a few seconds toupgrade your browser and... Purchased through Euromonitor.com global economy for many decades, providing a major source of energy for mores... 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