Factors affecting e commerce

1. Pest factors affecting online
e-commerce
Shopify.inc
VIGNESH . B
RA1852001020070
MBA “B”

2. PEST
It is an strategic management tool for identifying the external
factors(political, economic, social ,technological , ecological
/environmental ,and legal) that shape the conditions of the remote or
macro-environment .
Political factors that impact Shopify Inc.
 Level of corruption - especially levels of regulation in Technology sector.
 Bureaucracy and interference in Application Software industry by
government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Technology
 Anti-trust laws related to Application Software
 Taxation - tax rates and incentives
 Work week regulations in Application Software
 Product labeling and other requirements in Application Software

3. Economic Factors that Impact Shopify Inc.
 Type of economic system in countries of operation
 Government intervention in the free market and related Technology
 Exchange rates & stability of host country currency.
 Skill level of workforce in Application Software industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

4. Social Factors that Impact Shopify Inc.
 Demographics and skill level of the population
 Class structure, hierarchy and power structure in the societ
 Education level as well as education standard in the Shopify Inc. ’s
industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies
encourage entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

5. Technological Factors that Impact Shopify Inc.
 Technology's impact on product offering
 Recent technological developments by Shopify Inc. competitors
 Impact on cost structure in Application Software industry
 Impact on value chain structure in Technology sector
 Rate of technological diffusion Copyright, patents / Intellectual
property law
 Consumer protection and e-commerce
 Employment law
 Data Protection

6. THANK YOU