Location Strategy for Business
LOCATION STRATEGY FOR BUSINESS
Introduction
A new branch can be opened by big brands like Jollibee or Mercury Drug almost anywhere and expect people to come through the doors - but picking exactly the right location can mean much bigger profits. For a smaller business, knowing where to set up could make the difference between staying open and shutting down.
But how do you work out where to open up? Location strategy can help. By understanding things like how people travel, you can identify which locations will attract the most customers - and that can mean big money in business.
In the same way, your knowledge in geography can help to work out the best countries to expand into, or help to predict how changes in the economy that might affect a business’s future.
It is also vital for businesses that are trying to become more environmentally friendly - so even if you’re more motivated by saving the planet than making money, there might be a place for you in the world of business.
Strategic Locations for a Business
Finding the perfect location for your business is not an easy task. Some businesses don 't rely on foot traffic while others rely on a place that has a lot of natural traffic, plenty of parking and is in an area that penetrates your target market. But there are many factors that go into finding the perfect space that involve the size of your business, the type of business and your budget for a space.
Where is the Competition?
For some businesses, such as a bookstore or small family grocery store, being close to a competitor is a bad thing especially if the competitor is bigger than you and can offer more selection or better prices. For other businesses, such as restaurants or shoe stores, being close to a competitor can offer an advantage. Having a restaurant near others allows people to go to one place and find something to eat. Of course, you don 't want to be an Italian restaurant competing with an Italian restaurant. But if you offer a
Introduction
A new branch can be opened by big brands like Jollibee or Mercury Drug almost anywhere and expect people to come through the doors - but picking exactly the right location can mean much bigger profits. For a smaller business, knowing where to set up could make the difference between staying open and shutting down.
But how do you work out where to open up? Location strategy can help. By understanding things like how people travel, you can identify which locations will attract the most customers - and that can mean big money in business.
In the same way, your knowledge in geography can help to work out the best countries to expand into, or help to predict how changes in the economy that might affect a business’s future.
It is also vital for businesses that are trying to become more environmentally friendly - so even if you’re more motivated by saving the planet than making money, there might be a place for you in the world of business.
Strategic Locations for a Business
Finding the perfect location for your business is not an easy task. Some businesses don 't rely on foot traffic while others rely on a place that has a lot of natural traffic, plenty of parking and is in an area that penetrates your target market. But there are many factors that go into finding the perfect space that involve the size of your business, the type of business and your budget for a space.
Where is the Competition?
For some businesses, such as a bookstore or small family grocery store, being close to a competitor is a bad thing especially if the competitor is bigger than you and can offer more selection or better prices. For other businesses, such as restaurants or shoe stores, being close to a competitor can offer an advantage. Having a restaurant near others allows people to go to one place and find something to eat. Of course, you don 't want to be an Italian restaurant competing with an Italian restaurant. But if you offer a
References: Spee, Roel, and Wim Douw. "Cost-Reduction Location Strategies." Journal of Corporate Real Estate 6, no. 1 (September 2003): 30–38 Karl Heil and R. Anthony Inman. “Location Strategy.” Encyclopedia of Business, 2nd edition: p462-464