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How does the external environment affect e-business?

You have examined several different aspects of your start-up business. Identify what forces in the external environment (competition, political/legal, economic, social/cultural, and technological) would you believe to have the greatest potential impact on your success? Why?

Small Business is a special occasion gift basket store and virtual storefront on the internet.

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This will probably be your biggest threat. Since you are a virtual company online, you will compete with every other single gift basket company online. Since your product is shipped, it does not matter geographically where a person shops. Thus, people will go for the cheapest basket. This will mean that you will have to keep your profit margin small, or offer incentives such as cheap shipping to attract people to your online store.


In some cases your gift baskets might sell wine ...

Solution Summary

This posting looks at various external factors related to a special occasion gift basket on-line store such as: competition, political/legal, economic, social/cultural, and technological. this solution is 343 words.