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PEST Analysis
A PEST analysis will look at the Political, Economic, Social & Technological effects on your eBusiness and eMarketing plans.
Political: For UK sales and marketing the political effect on the business should be minimal although you will need to make sure you are covered as regards any age restrictions your products may have in the country that the website is viewed. If you decide to start selling abroad then you will have to look at the laws in the areas they are wising to market so that consumer rights are taken into account.
Economic: Although in the middle of a “credit crunch” online B2C & B2B sales appear to be steady as consumers are looking to get the higher value product at a lower cost. The only economic issue's you may need to be concerned with is the resourcing of the project and plans. Baring in mind we are in a “credit crunch you may wish to rethink your pricing to be more competitive.
Social: This one is harder to predict. Who would have thought facebook or myspace would be as big as they are (its reported that in the USA myspace has overtaken Google as the nations favourite we resource)? Or SMS messaging would take off? If though your web business has a social impact you may need to build in damage control should that impact turn negative. Noticing shifts in the online market may benefit you if you are looking to develop new areas or advertise your site in these areas.
Technological: Because of the rise in eCommerce service providers and the drop in price for these areas it is easier to sell online and take orders online. You can benefit from this in a large way when developing your eBusiness. Staying ahead of technology that actually benefits your customer, not technology for technologies sake as that is dangerous, will mean you stay ahead of the crowd.
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