Browsing by Author "Rajakaruna, S.C."

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    Factors Affecting on the Global Market Share of Sri Lankan Tea
    (Uva Wellassa University of Sri Lanka, 2013) Rajakaruna, S.C.; Gunathilaka, R.P.D.
    The tea industry of Sri Lanka has not performed well recently in the competitive global tea market. The slowing of growth is creating more global competition for market share. The country is conceding its market share to emerging producers like Kenya and other African producers. As the global tea industry is very competitive, the slow market growth means each producer faces the challenge of maintaining their position (Ali et al, 1997). Market share is an effective indicator of global competitiveness. Yet market share of Sri Lankan tea industry is mainly affected by various internal and external factors. Therefore, this research was carried out to determine the major internal factors affecting on the market share of Sri Lankan tea and to forecast the trend of Market Share with the identified internal factors. Methodology Time series data on average black tea yield in Kilograms and Sri Lanka’s world percentage share of tea exports from 1987 to 2011 were collected from statistical bulletin published by Sri Lanka Tea Board and time series data on cost of production of tea, Free on board price (F.O.B Price), value added percentage of GDP, Colombo auction prices, quantity sold at Colombo auction from 1987 to 2011 were collected from annual reports of central bank of Sri Lanka, which provided a total of 25 years tea industry data. MINITAB 15 software was used to get the basic descriptive statistics, correlation, multiple regression analysis and Trend analysis. Correlation analysis was done to determine the relationship between the factors. Then Multiple Linear Regression was used to analyze the relationship between independent variables and dependent variable. Trend analysis for Market share, Colombo auction price, cost of production and productivity was employed by using Minitab 15 Statistical software and based on MAPE value, the best model was selected.