Although all the factors you mention may have some potential effect on
a small gift basket business -- I would think that economic factors
would have the greatest potential for having a direct impact on such a
business.
This is because the gift market in general, and the upscale gift
segment in particular (which would include gift baskets) is directly
dependent on the amount of discretionary income available in an
economic market. The more discretionary income available to the
average individual in your customer base -- the more potential market
for a gift basket business.
Competition will of course have a direct effect -- but competition only
appears when the local economy can support it. Politics/legal
will have an indirect effect because of the relationship between the
government policies and regulations (at all levels) and the economy. Of
course, government policy and regulations (especially on the local
level) will have a direct effect on any business, including gift basket
businesses.
Social and cultural factors will have some influence on a gift basket
business. For example, demographic changes within an area will be
reflected in the number and types of holiday and other gifting
occasions that are celebrated.
Technological changes/innovations could have both positive and negative
effects on a gift basket business -- although the potential impact of
technological factors on such a business would seem to be relatively
small -- compared to the other factors discussed. For example,
technological innovation might make existing gift basket items more
available and therefore, less expensive. On the other hand, the
internet is an ever-increasing competitor for the attention and dollars
of today's gift shopper. This means that any 'brick and mortar'
gift basket business would need to consider having an internet
'storefront' -- preferably with some local products and/or a local
theme -- in order to give the virtual shopper a reason to 'drop-in'.
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Adding a bonus -- should you wish to do so -- would be warmly welcomed.
Good Luck!
Steve
Counselor /listener/collaborative problem solver. Thanks!