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In several years the use of E Commerce and its popularity are excessively growing. Retail industry is also playing the major role in E Commerce. Retail is the process of selling consumer goods or services to customers through multiple channels of dis
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External External factors that effect retail Industry •
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Social – how consumers, households and communities behave and their beliefs. For For instance, changes in attitude towards health, or a greater number of pensioners in a population. Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political – how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. Technological – how the rapid pace of change in
Retai tail Mark arkets are chan hanging all the the time. It does depe depend nd on the the type type of prod produc uct t the the busi busine ness ss prod produc uces es, howe howeve ver r a busi busine ness ss need needs s to reac react t or lose custome customers rs. Some Some of the the main main reas reason ons s why why mark market ets s chan change ge rapidly: Cust Custom omer ers s deve develo lop p new new need needs s and and want wants s. New New comp compet etit itor ors s ente enter r a mark market et. New New tech techno nolo logi gies es mean mean that that new new prod produc ucts ts can can be made. A wor world or countr ntrywide event happen pens e. g. Gulf War or foot foot and and mout mouth h dise diseas ase e. Gover Governm nment ent intro introdu duce ces s new new legis legislat latio ion n e. g. incre increas ases es mini minimum mum wage wage.
