Competitive - Michael Porter 5 Forces
Executive Summary
Economic development of Sri Lanka is mainly based on agriculture and tea industry is a major contributor. For the past three decades tea industry intermittently faced with drastic issues resulting downward trend in economic and social development. Previously held dominated no one position of tea export is recently over taken by Kenya. Country economic policy to compete rigorously in world tea market is vital necessity for the growth, as the challengers with new producing countries, technology and consumer changing demands escalating the current situation.
Introduction
Tea exports income denotes a significant amount of international currency for islands total revenue for more than a century. (Bandara J.S 1999) Few main producers dominate the export tea market and shape the industry while smallholders presence is paramount for the society well being and development of cottage industry. This article explore the strategic assessment of the industry structure for the growth of tea industry in Sri Lanka and prevailing obstacles for achieving the goals.
Sri Lanka Tea Scene
Tea plantation in Sri Lanka was introduced in 1867 by James Taylor a British Planter (Wikipedia) and under British control, many tea estates were planted by British entrepreneurs at that time. Sri Lanka’s long standing image for producing the best quality tea entrenched the plantation as a commercial industry and many other related business emerged creating more than one million direct and indirect employment.(Wijeratne, 1996)
Tea plantation is vastly spread over the highland and midland amounting 56% and 23% respectively of non forest plantation (Bandara,J.S ) however the tea area decline due to soil erosion and degrading of land cause serious threats. Low land tea plantation recently shows massive decline as many non performing plantations are used to alternative usage.
[pic] Tea Plantation Geographical spread.
Source :
Economic development of Sri Lanka is mainly based on agriculture and tea industry is a major contributor. For the past three decades tea industry intermittently faced with drastic issues resulting downward trend in economic and social development. Previously held dominated no one position of tea export is recently over taken by Kenya. Country economic policy to compete rigorously in world tea market is vital necessity for the growth, as the challengers with new producing countries, technology and consumer changing demands escalating the current situation.
Introduction
Tea exports income denotes a significant amount of international currency for islands total revenue for more than a century. (Bandara J.S 1999) Few main producers dominate the export tea market and shape the industry while smallholders presence is paramount for the society well being and development of cottage industry. This article explore the strategic assessment of the industry structure for the growth of tea industry in Sri Lanka and prevailing obstacles for achieving the goals.
Sri Lanka Tea Scene
Tea plantation in Sri Lanka was introduced in 1867 by James Taylor a British Planter (Wikipedia) and under British control, many tea estates were planted by British entrepreneurs at that time. Sri Lanka’s long standing image for producing the best quality tea entrenched the plantation as a commercial industry and many other related business emerged creating more than one million direct and indirect employment.(Wijeratne, 1996)
Tea plantation is vastly spread over the highland and midland amounting 56% and 23% respectively of non forest plantation (Bandara,J.S ) however the tea area decline due to soil erosion and degrading of land cause serious threats. Low land tea plantation recently shows massive decline as many non performing plantations are used to alternative usage.
[pic] Tea Plantation Geographical spread.
Source :
References: Ali, R. Choudhry,Y. Lister,D.W., (1997) Sri Lanka’s Tea Industry : Succeeding in Global Market World Bank Discussion papers 368 Bandara, J.S and Coxhead, I.(1999) Can Trade Liberalization Have Environmental Benefits in Developing Country Agriculture? A Sri Lankan Case Study. Journal of Policy Modeling 21(3):349-374 Wijerathna,M.A (1996) Vulnerability of Sri Lanka tea production to global climate change Water , Air and Soil pollution, Kluwer Academic Publishers , Netherlands.92 : 87-94 Annual Report (2007) Sri Lanka Tea Board. http://www.recoverlanka.net/data/SLDF05/SLNDS.pdf( Accessed 05.07.09) Following sites are with some importance to explore more on the industry.