Location Options For Retail And Service Businesses

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

These externalities roll in the hay in form of backward linkages to the gos from other firms , pulling a training school for manpower developing and workers trainingADVANTAGES AND DISADVANTAGES OF LOCALIZATION OF FIRMSAdvantages of primal Business District includeEncourage the development of supportive supporter centersAccess to gallant skilled tasksAccess 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 business level among service firmsIncrease in cost of operation gull to congested industry and business districtAdvantages of approach locationHaving fortune to wanton feedback from customers and clientsEasy advertisement of services to clientsPersonal services be substantially tailor to client enjoyAssess to raw material for retail storesDisadvantages of Neighborhood locationService training argon restricted to those in the neighborhoodHigh cost for introducing naked(a) technology and hands trainingAdvantages of obtain Centers and Malls locationOn e time obtain is slowly carried out by cus! tomersAttraction of different categories of customers are encourages cod to merchandise and services differentiationDisadvantages of Shopping Centers and Malls locationshop lifting are good carried out due to many identify outputsCustomers whitethorn be tempted to buy the molest product due to plethora of appealing products in the window dressingAdvantages of store coterminous competitorsNew strategy and business idea are learn from rivalsCost decrement are reduced due to the competition among firmsRaw materials are good accessedInnovation are encouraged due to mount-blooded competition among firmsEncourage universe 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 market planning is encouragedEasy transportation of goods are enabledEasy location of service and goods to an outletDisadvantages of far areasFew operators are encouraged in the market which proceedss in charge hikeCustomers cannot make all service shopping in wizard 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 growth of the business operations or may hinder it depending on the location and business type . It is consequently germane that fair to middling 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.net

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