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Business location
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Where a business is based can affect its costs, its customers and its success.
Proximity factors
Market: being near customers, essential for shops and cafés.
Labour: being near workers with the right skills.
Materials: being near raw materials, important for heavy or bulky inputs.
Competitors: some avoid rivals; others cluster together, such as restaurants in one street.
Labour: being near workers with the right skills.
Materials: being near raw materials, important for heavy or bulky inputs.
Competitors: some avoid rivals; others cluster together, such as restaurants in one street.
Nature of the business
A hairdresser must be where customers can visit. A factory needs space, transport links and cheaper land.
An online business can be almost anywhere.
An online business can be almost anywhere.
The internet and location
E-commerce means selling online. A business can reach customers nationally or globally without a shop.
It can save on rent, but it still needs a warehouse and delivery.
Many businesses mix fixed premises and e-commerce.
It can save on rent, but it still needs a warehouse and delivery.
Many businesses mix fixed premises and e-commerce.
A brewery uses tonnes of water and grain. Suggest a key location factor.
- The inputs are heavy and bulky.
- Transporting them is expensive.
Answer: Being close to its materials.
Location depends on nearness to market, labour, materials and competitors, plus the nature of the business. E-commerce lets businesses sell without a shop, cutting rent but needing delivery.
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