Some factors will be more important to different types of businesses, and a PESTLE analysis will help identity risk factors for the SWOT analysis. Major political instability and distressed government finances have blighted Sri Lanka, which is mostly unfree for economic freedom. The country is drawing a lot of foreign investments every year. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. 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 banks also follow the rules and regulations set by the international organizations that work on financial institutions worldwide. Copyright 2017 2025. Study for free with our range of university lectures! For example, today, payment and cooperative banks serve the varied sectors of society. Approximately more than21million people are populating Sri Lanka. The hospitality industry needs to worry about . The telecom company operates 2G, 3G and 3.5G mobile services, supporting the current trends in . Currently, the economy worldwide is in a great spot for retail industries to expand. 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. Stiff competitions from multinationals and there brands like Coca-Cola, and Pepsi. Click on 'Use Immediately' to import the template's contents to the EdrawMax canvas. 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. CCS PLS is also the house for production of one of the countrys leading brand of ice cream under frozen confectioneries. Looking for a flexible role? Sociocultural forces that regulate the values, mores and customs of society. Over the years, the banking industry has reached magnificent customers and created millions of jobs. 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. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. The journey of KP began in 2001 as an independent . 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. Customers are getting attracted to better interest rates and customer service. 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. Our academic experts are ready and waiting to assist with any writing project you may have. Keells Supper is retailer the supply chain which links their unique range of product with powerful brand equity to the consumer making the JKH consumer foods & retail industry a power house. This is common to agricultural products since they could go out of produce. 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. Looking further into the analysis proves that this competitive strategy could be best approach to retain competiveness of other forces, since keels super can and has build unique brands which have high brand loyalty giving them big margins on brand equity. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Check the template that resonates closely with your business model. 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. PESTLE Analysis of Nestle examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Pizza Hut Marketing PLan - BSB 126 MARKETING PLAN NAME: Matthew Fagg STUDENT NUMBER: N9447334 TOTAL - Studocu . Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. 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. Telecom Outsourcing Market Telecom Outsourcing Market - Massive Growth Ahead| Ericsson, IBM Corporation, Cisco Systems In this case the core retailing activities of keells supper, centers around a large volume of consumer goods produce by the Consumer food industry of JKH (KFP PLC and CCS PLC) which has high brand equity. KFP PLC engages in manufacturing a range of products these include processed meats and crumbed products as well as the sale of raw meats. Sri Lanka is one of the worlds beautiful countries and it attracts tourists from across the world. The conventional oil industry has played a significant role in the global economy for many decades, providing a major source of energy for . Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. 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. 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). JayKay Marketing Services (Pvt) Ltd. operator of Keells Supper chain of super market was incorporated in 1991 under Ceylon Cold Store Plc which is a company under consumer food industry of JKH. Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. 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. Many banks have opted for paperless transactions to decrease the use of paper. 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? Which countries are moving up the value added chain away from primary sectors? Threat of New Entrants will add new capacity also the new entry would have a desire to gain market share and substantial resources. However recent indicators show a sharp decline in consumer spending power due to constant inflations prevailing company will have to watch out for these. Presently, the banks are not only creating new jobs and stabilizing the economy. Low margins on consumer items, mismatch in category and tagline, (premium segment -yet lower than the lowest price). The use of credit cards and debit cards is increasing in place of paper currency notes. Imitations threats, Parity differences are affecting the raw materials imported to the company. Specifically a PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organisation. Different countries have different laws, but they can affect the banking industry -, If you are using the offline version of EdrawMax, open the tool in your system. Keells supper is active in high information analyzing with constantly monitoring its key performance indicators, also its production line up consider optimization and cost reduction by increase productivity and minimizing waist reducing and adjusting and setting off the fixed cost as possible. Social factors impact the banking industry as banking services involve public dealings. The banking sector is helping the small business and small-scale industries to grow. Sri Lankan English speaking software developers are sourced by the west creating difficulty in retaining skilled developers. Available at: https://www.marketingtutor.net/pestle-analysis-of-banking-industry/ (Accessed 24 August 2022). It is creating a perfectly competitive environment. Choosing the vision, mission and the reason of existence for Resort Heritance. Writing. Posted on . The government and financial bodies under government supervision make laws to make the banking system less risky. It's one of the few industries who managed to scrape through. Scope of Sri Lanka - PESTEL Analysis Report. In this guide to analysis of the PESTEL, we saw how easy, effective, and efficient it is to work on a PESTEL analysis once we use EdrawMax templates. All work is written to order. However, there are some social issues challenging Sri Lanka today. Should we compete head to head with our major competitors for the biggest but most sought-after share of market, or should we focus on niche in which we can satisfy a less sought-after but also profitable segment of market? Together they have received prestigious awards such as prestigious industrial Excellence award Gold award for manufacturing large category. EdrawMax gives you ample options to customize your PESTEL Analysis diagram. 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. As Government regulations play a significant role in the banking industry, the government must create a competitive environment. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. 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. In. 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. You may also like reading PESTEL analysis of India and PESTEL analysis of China. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental factors. In today's business scenario most of the companies are astonished by the amount and type of changes taking place in their external environment. EGB the natural ginger beer, Cream soda, Orange crush, Orange barley, Lemonade, Necto, Soda, Apple soda, Dry Ginger, Ale Tonic, Caffeine based wild elephant (energy drink) and blue fountain bottled drink water under the name of Elephant house. Sri Lankas top main exports are ladies undergarments and tea. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. (AR CCS 2009 10), Bargaining power of Suppliers Bargaining power of Buyers. Also with the value engineered state of the art production facilities which is backward integrated to the keells super, supermarket range. 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. Certainly, rapid human development is having its toll on the environment. 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. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. The foreign investors may feel reluctant to invest due to the change in currency conversion rate, thus, affecting the bank's business. Government Support on the IT Sector. However, Sri Lanka also faces some environment challenges e.g. 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. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. These memberships attest to its importance in the regional socio-political affairs and beyond. (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. After technological advancement, the model of banking is changing. The PESTEL analysis of the Banking Industry can show how external factors can affect the banking industry. The banks are using tools like the internet and SMS to keep the customers aware of the transactions. Known until 1972 as Ceylon, Sri Lanka is an island surrounded by the Indian Ocean.as a result of its location in the path of major sea routes, Sri Lanka is a strategic naval link between West Asia and South East Asia and was colonized by Portuguese, Dutch and English . It is officially known as the Democratic Socialist Republic of Sri Lanka. The banking sector needs an internet connection for their transactions. Strengths Companies quality policies GRI global reposting initiative will help improve capacity of the company and encourage investors. 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. the retail shops have faced major threat from the huge discount store like Big Bazar, D-Mart or Wall Mart. 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