Location Break Article For Free

Simply put, location strategy is a plan that includes determining the objectives of your company and then finding the right location to achieve them. There are many factors to consider, so choosing a new location should be preceded by an in-depth analysis.

Nearness to Markets It is important to locate near the market area if products are in bulk or heavy products and higher transportation cost. For example, if a company is indulged in the production of heavy metals, then it is feasible to locate the plant near the market of the product.

A location analysis is part of a comprehensive business plan that includes examination of the physical, economic, and demographic characteristics of a potential location. The purpose is to determine the viability of a particular location for the business and to provide information that will inform strategic decisions.

Formulating a location strategy typically involves the following factors: Facilities. Facilities planning involves determining what kind of space a company will need given its short-term and long-term goals. Feasibility. ... Logistics. ... Labor. ... Community and site. ... Trade zones. ... Political risk. ... Governmental regulation.

One of the most widely used methods for location analysis is the factor rating method. This method involves identifying the relevant factors that affect the location decision, such as labor availability, land costs, taxes, infrastructure, market access, and quality of life.

Location planning is the process to help evaluate the impact of location on the consumer buying process. No single location is the same as another. It's obvious but it's surprising how often brands and retailers don't account for this fact.

For example, if a retailer were to offer its products on-line, the customer who wants to touch and try on the products at a regional location could do so; others could stay at home, make a selection, place an order, and await delivery. The retailer would eliminate the need for a location in every market.