Question

You are preparing to open your dream business. What criteria will you evaluate in selecting its location? Why? How might these criteria affect the short and long-term success of your business? Identify a business you are familiar with and assess the effectiveness of its location based on some of the same criteria.

Answer 1

One of the most important criteria that I would choose in the selection of the location is that I would actually find out whether there is demand in that location or not and the raw materials for the process are available nearby or not in order to minimise the transportation costs. However, existence of demand can be considered as one of the important factors because this is a long term success formula if you can maintain the supply to meet the demand of that product or service whereas getting a benefit away from the competition such as predatory pricing strategies can be a success in the short term. The effectiveness of the location can we identified by the sales after using the promotional tools and comparing it with that of similar business at other area can get to identify what is the effectiveness of the business if it is done in this particular location and for example if I take the case of a restaurant of Indian cuisine in Texas it would be beneficial as there are lot of Indians living in Texas but if you take a similar case in Nevada, this wouldn't work because there are much Indians there and in this way effectiveness of of location is also important.