Location options for retail and service businesses

INTRODUCTIONA theater office of determines how it operates and what factors hinder or enabling the degenerate to operate effectively. Localization of industry is beneficial in galore(postnominal) instances, and at the same time has its demerits. Concentration of businesses service in the same emplacement gives firm economies of externalities. These externalities come in form of backward linkages to the services from another(prenominal) firms, pulling a training school for manpower development and workers training.ADVANTAGES AND DISADVANTAGES OF jam OF FIRMSAdvantages of Central Business District includeI. throw out the development of confirmatory service centers. Access to high skilled labors. Access to surgeryal tools and hold open partsV. Access to modern technology and information technologyV. Encourage development of common training centers for staffers and clients orientation.Disadvantages of locating a service firm in a business district includeI. Increase in emulati on level among service firmsII. Increase in cost of operation repayable to congested industry and business district.Advantages of Neighborhood location. Having opportunity to get feedback from customers and clients. roaring advertisement of services to clients. Personal services be easily tailored to client smack.V. Assess to raw material for retail stores.Disadvantages of Neighborhood location. Service provision ar restricted to those in the neighborhood.High cost for introducing new technology and workforce training.Advantages of obtain Centers and Malls location.One time shopping is easily carried out by customers.Attraction of different categories of customers are encourages due to harvest-festival and services differentiationDisadvantages of shop Centers and Malls location. Shop lifting are easily carried out due to many differentiated products.Customers may be tempted to buy the wrong product due to plethora of appealing products in the window dressingAdvantages of st ore approach competitors. New strategy and business idea are learn from rivals. live reduction are reduced due to the controversy among firms. Raw materials are easily accessedV.Innovation are support due to healthy competition among firmsV. Encourage introduction of modern technologyDisadvantages of store near competitors Organization strategies are counterpart thereby rendering the operations ineffective Unhealthy competition leads to blackmailing and sabotaging activities against rivalsAdvantages of outlying areas Proper structure and market planning is encouraged Easy transportation of goods are enabled Easy location of service and goods to an outletDisadvantages of outlying areas fewer operators are encouraged in the market which results in price hobo Customers cannot make all service shopping in one location.Advantages of inhabitancy based location Backward linkage to local raw materials is encouraged Cheap labor and cost reduction is easily accessed Local t aste and culture is easily recognized and upheldDisadvantages of Home based location Varieties of product and service are restricted due to local taste and wants difficultness in introducing new technologiesCONCLUSIONThe location of retail or service businesses influences how strong such firm operates. The location may result in the forwarding of the business operations or may hinder it depending on the location and business type. It is then germane that adequate assessment is conducted to weigh the pros and cons of a place where a business would be located in rank to derive maximum advantages.