British Company Facing Difficulties
In this days all the countries try to capture the global market for their product and services. Every small market dominated by national and international dealers. Because of the demand, the product or service sometimes the market follow their customer to give service or by them they get good business. Now days the foreign markets move to 3rd world because of the cost reduction. In their countries they pay high wages and high tax for this reasons these markets targeting foreign markets. When a company try to sell it’s product or service they will face good responses and some difficulties so I am going to pointing the difficulties.
Success in Sri Lanka Success in Sri Lanka will depend on the correct estimation of the country’s potential, underestimation of its complexity or overestimation of its possibilities can lead to failure. While calculating, due consideration should be given to the factor of the inherent difficulties and uncertainties of functioning in the Sri Lankan system. Entering Sri Llankan marketplace requires a well-designed plan backed by serious thought and careful research. Market potential In Sri Lanka there is less market potential because in the subcontinent reign there are two big giant markets selling their product and service to Sri Lanka .
they make very low cost product and they know very well about Sri Lankan taste of the people and their psychological metality. So they can easily capture the Sri Lankan market their one is china and other is India same time other cheap cost markets leaders like Korea and Japan also selling their products in Sri Lanka . So entering Into Sri Lankan market is high risk And not easy to dominate that market . Market size Sri Lanka is a small country with a 1. 5 kro this is very small population for investing big sum on it. Return will come very small . Cost of living
Sri Lankan middle class is large but they are getting very low wages and the product are getting high price . So the cost of living in Sri Lanka is high then the spending power is less people they don’t want to buy on luxury items . television is a luxury item in Sri Lanka. But in any other countries that is essential good for living . Infrastructure hassles Problems include power demand shortfall, port traffic capacity mismatch, poor road conditions (only half of the country’s roads are surfaced), low telephone penetration. And the war made the infrastructure damage .
some parts of Sri Lanka we don’t have railway lines. This all looted by people for their own safety. Some part of Sri Lanka we don’t have electricity . This is draw back for the business. These are the things make problem in delivery. This make extra cost for the product. And high chance for damage of the product. Ethnic problem This is the most costing problem and damages the Sri Lankan economy this problem cost 64000 lives. And make phase in the state function. waste of the capital assets , reduction of monetary value against the global trade. Can’t do the trade all over island.
Government putting restriction on economic embargo on north and east side of the Island. People becoming poor and poor. This not good climate for doing business in Sri Lanka. Economic policy In Sri Lanka political situation is not stable . There are two major political parties involving in the politics. This parties policies contradiction each other. One following capitalism policy other one follows favour of SOCIALISAM . this two contradict policy made worse economy in Sri Lanka. This not a stable condition for business . normally investors target their profit over a period of time .
with in one Government period time (5 years) they can make their return unless if it is very small target period time. Sri Llankan bureaucracy For the business Sri Lankan Government acting a business deal with an inefficient and some times very slow moving bureaucracy. for decision making this factor is very essential. When seasonal trade all the official work must be finish quickly other wise need to loose money . In this time if government take time to react will cost lost. And the government give full support to the own people who are producing product or service. Low and order
In Sri Lanka certain days you can’t do the certain business . you can’t sell any live or dead animals or can’t kill animals or meat or fish on Poya days(full moon)it is state offence They think that is the day lord Buddha’s special religious days. Selling school books by private people which is printed by government is a state offence. Because government giving that books to the students . and the education is totally free in Sri lanka . Fresh water fishing is banned in Sri Lanka Government sanctions In Sri Lanka producing ,selling ,importing genetically modified product is banned.
This new rule active from 2002. so any body can’t import GM product from foreign countries. Piracy This is big money earning illegal business in Sri Lanka . Down load music or film from inter net and they sell very cheep price to the market. So the genuine business by foreign traders loose business and they loose their money by this activities. Exchange rate When you see Sri Lankan exchange rate with other countries it is very low . the person who do the business in Sri Lanka will face big difficulty to send money to his country . He won’t make good profit when he send that money to his country .
And he have to pay more money to by materials or service which related to produce product or service. This situation makes him to think to close down his business or not to enter the business in Sri Lanka . Import tax Some of the product and services which are imported from foreign countries are highly tax charged by custom and excise because the Sri Lankan government want to help and develop his own local market Labour lows In Sri Lanka lows for the labour is very old system there are not new lows are included in the legal system
Perception In Sri Lanka there are four types of religious communities are living. They have different perceptions among them. Hindu ladies never wore a white sari (dress) unless they are widow. Buddhist never wore a black sari unless they are widow. Cast In Sri Lanka people adept to casting system. Particular group of people doing particular job. Other people won’t to do that job. This makes no new technology entering in to that particular job. Still they are using old methods. we are 15 years back in new technology .