location

• Proximity


  • How close it is to customers
  • Example: local shops and takeaways
• Competition


  • Some businesses tend to be close to each other so that they can steal customers away
  • Some tend to be far away because of competition
  • Example: Broadaway or city centre
• Availability of raw materials

  • How the suppliers get to a business
  • Closer to suppliers is easier and cheaper
  • Further from suppliers is harder and more expensive
• Availability of labour


  • Retail shops are closer to bus stops meaning it's easier for employees to get to work on time
  • Closer location is much cheaper
• Transport links


  • How close the business is to motorway links and bus stops
• Technology


  • The amount the business depends on high speed and reliable technology
• Cost


  The cost of the business location
• Overseas location


  • A business setting it up in another country
  • Advantages: access to resources not in the UK, cheap labour, larger customer base, increased growth and profit
  • Disadvantages: different laws, customers may have different tastes, business may need to make changes to attract customers