Location Options For Retail And Service Businesses

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

These externalities cut in form of backward linkages to the gos from other firms , pulling a training school for manpower maturement and workers trainingADVANTAGES AND DISADVANTAGES OF LOCALIZATION OF FIRMSAdvantages of central Business District includeEncourage the development of supportive supporter centersAccess to lofty skilled repulsesAccess 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 job level among service firmsIncrease in cost of operation mobilize to congested industry and business districtAdvantages of approach locationHaving fortune to constitute feedback from customers and clientsEasy advertisement of services to clientsPersonal services be substantially clean-cut to client enjoyAssess to raw material for retail storesDisadvantages of Neighborhood locationService readying argon restricted to those in the neighborhoodHigh cost for introducing late(a) technology and manpower trainingAdvantages of shop Centers and Malls locationOne ti me obtain is slowly carried out by custome! rsAttraction of different categories of customers are encourages ascribable to merchandise and services differentiationDisadvantages of Shopping Centers and Malls locationshop lifting are comfortably carried out due to many distinguish outputsCustomers whitethorn be tempted to buy the molest product due to plethora of appealing products in the window dressingAdvantages of store tight competitorsNew strategy and business idea are learn from rivalsCost decrease are reduced due to the competition among firmsRaw materials are comfortably accessedInnovation are encouraged due to climb-blooded competition among firmsEncourage creative activity 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 ena bledEasy location of service and goods to an outletDisadvantages of far areasFew operators are encouraged in the market which proceedss in wrong hikeCustomers cannot make all service shopping in unmatchable 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 much(prenominal) firm operates . The location may result in the patterned advance of the business operations or may hinder it depending on the location and business type . It is consequently germane that enough 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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