As online business, by its very nature, is global then the effect of these four areas of concern can be different from country to country. If you are planning to sell abroad you need to have done your home work as to the rules and regulations that apply.
Political Effects on an eBusiness
How does politics affect the eBusiness world? Unfortunately politics can affect your eBusiness and the products you sell because politicians make the laws. So if the law changes regarding products that can be sold in the country you are shipping to or products that can be sold online, you will need to know and take appropriate action.
Economical: Surviving the Downturn
Most businesses online and off realise the effect this aspect has on their business now more than ever. Credit crunch, recession or whatever else the economists call it the world of business online and off is worried about what the future holds. Monitoring your cash flow and more importantly your profit is crucial. Even in times of economic hardship you can find that you are making great returns on investment and just because the world is cutting back on its marketing it doesn’t mean you have to.
Social Effects on Your eBusiness
Social networking has become massive in a very short period of time. Social awareness of the world’s environmental needs affects the products that many people buy. What was popular and acceptable 30 years ago is not today.
Online opinions change fast. The social effect on your business could be massive especially if you are in the business of consumer markets. Make sure you monitor social sites that relate to your business. Where possible, advertise in the online social networks that are attractive to your target audience.
Technology and How it Affects Your Business
This is a bit obvious for anyone who runs an eBusiness but technology is definitely something that you should keep track of. Technology that was once expensive can now be very cheap. Ecommerce websites and forum technology is so advanced that it is relatively easy to set up an online business for hundreds not thousands. On top of this, getting your message across can be much easier if clever technology is used.
PEST in Conclusion
Whether or not you think that a PEST analysis will help your business, just thinking around the subject can help you spot potential issues before they arise. These need not be in-depth or complicated but just a simple bullet point list of how these four areas could affect your business.
Samuel O'Prey - I am the marketing manager with 10 years online design, development and marketing experience and over 8 years telemarketing, direct ...
