location

• location for new and existing businesses is determined by:

  • access to people
  • Minimum amount of money used
  • Access to factors of production
• Factors of Location

  • cost
  • market and competition
  • infrastructure
  • social
  • Labour
  • Government influence
  • variety of choice internationally
• Cost

  • Most important factor
  • important for newer businesses because they will need to keep cost low as they dont receive much capital
• location costs:

  • planning permission
  • buying or renting/leasing
  • Refurbishment
  • Business rate
  • Transport
  • Labour - wages
• cost

  • Difficult to choose location due to limited amount of money. Will move to a location that fits their budget in order to build the company up and relocate when they have more capital
  • Will have to look at key factors of other locations as they have limited amount of money.
  • Consider the importance of the area based on its success. ( products + market they are in)
• Market + Competition

  • Market is a place where buyers and sellers meet to exchange goods therefore:
  • A location is still needed so that B2C exchanges still happen as its face-to-face.
  • Influenced by the access their location has to customers
  • Being closer to your competition can be a benefit for marketing
• Marketing + competition

  • similar stores from the same chain and staffing levels can vary in annual sales
  • Some regional markets where it involves B2B, the business will locate closer to supplier as just in time method is used more often nowadays