Analyse the Coir Substrate Industry in Sri Lanka through a SWOT Exploration

Abstract

Sri Lankan coir substrate industry is a significant source of foreign exchange earnings and employment. There is a significant gap between demand and supply for these products in the global market. This SWOT study was conducted to identify barriers to improving production and develop and prioritize strategies to overcome them. To develop a questionnaire, a list of strengths, weaknesses, opportunities, and threats were identified through library studies and personal interviews with industry familiars. The reliability of the Likert scale questionnaire was tested through the Cronbach alpha reliability test. Data were collected through a questionnaire by holding in-depth telephone call interviews with managers and owners of 30 registered companies under the Coconut Development Authority. The main three phases included in the research framework were the input phase, the comparison and correspondence phase, and the decision-making phase. Descriptive analysis evaluated sociodemographic factors, industry-related factors, company future trends, and reasons for the lower availability of raw materials. Ultimately, required strategies were determined based on the Internal Factor Evaluation Matrix (IFEM)-External Factor Evaluation Matrix(EFEM), and developed strategies were prioritized using the Quantitative Strategic Planning Matrix(QSPM). Less coconut production and inefficient husk collection mechanisms were identified as the major reasons for the scarcity of raw materials. Mostly prioritized strength was large market share for Sri Lankan coir substrate products in world market and the labor-intensive industry was identified as the major weakness. The prioritized opportunity was the growing world demand for washed and buffered products. Because of this major threat was few low-quality products damage the well reputation of all the other high-quality products produced and export from Sri Lanka. According to the result of the IFE - EFE matrix, Sri Lankan coir substrate industry belongs to the quadrant that requires more competitive strategies to achieve and maintain success of the industry.