Location Options For Retail And Service Businesses

INTRODUCTIONA inviolable location of determines how it operates and what factors hinder or enabling the firm to operate effectively . Localization of industry is beneficial in many instances , and at the same time has its demerits Concentration of businesses dish up in the same location gives firm economies of externalities .

These externalities come in form of backward linkages to the gos from other firms , pulling a training school for manpower development and workers trainingADVANTAGES AND DISADVANTAGES OF LOCALIZATION OF FIRMSAdvantages of primaeval Business District includeEncourage the development of supportive supporter centersAccess to exalted skilled laborsAccess to consummational tools and sp be partsAccess to modern technology and reading technologyEncourage development of common training centers for staffers and clients orientationDisadvantages of locating a service firm in a business district includeIncrease in argument level among service firmsIncrease in cost of operation cod to congested industry and business districtAdvantages of approach locationHaving fortune to pee feedback from customers and clientsEasy advertisement of services to clientsPersonal services be substantially tailored to client enjoyAssess to raw material for retail storesDisadvantages of Neighborhood locationService provision are restricted to those in the neighborhoodHigh cost for introducing new(a) technology and workforce trainingAdvantages of Shopping Centers and Malls locationOne time obtain is slowly carried out by customersAttraction of different categories of customers are encourages due to merchandise and services differentiationDisadvantages of Shopping Centers and Malls locationshop lifting are easily carried out due to many differentiated outputsCustomers whitethorn be tempted to buy the molest product due to plethora of appealing products in the window dressingAdvantages of store near competitorsNew strategy and business idea are learn from rivalsCost reduction are reduced due to the competition among firmsRaw materials are easily accessedInnovation are encouraged due to full-blooded competition among firmsEncourage introduction of modern technologyDisadvantages of store near competitorsOrganization strategies are counterpart thereby rendering the operations ineffectiveUnhealthy competition leads to blackmailing and sabotaging activities against rivalsAdvantages of far areasProper structure and foodstuff planning is encouragedEasy transportation of goods are enabledEasy location of service and goods to an outletDisadvantages of outlying areasFew operators are encouraged in the market which proceedss in price hikeCustomers cannot make all service shopping in one locationAdvantages of Home based locationBackward linkage to local raw materials is encouragedCheap labor and cost reduction is easily accessedLocal enjoy and culture is easily recognized and upheldDisadvantages of Home based locationVarieties of product and service are restricted due to local taste and wantsDifficulty in introducing new technologiesCONCLUSIONThe location of retail or service businesses influences how well such firm operates . The location may result in the advancement of the business operations or may hinder it depending on the location and business type . It is consequently germane that adequate assessment is conducted to weigh the pros and cons of a...If you want to get a full essay, order it on our website: Orderessay

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