Question

1. What is a good location? The key points could include: • Traffic • Signage • Access Compatibility with market . 2. Compare brick and mortar stores vs online retail sites. Why people shop online?

Answer 1

1. Choosing a good location for the business can impact the success and survival of the business in the market. Following points are to be considered while selecting location for the business:

a. Population Demographics – A good business should be located near to its targeted customer base. It involves analysis of the potential customers to be targeted and their location in the market.

b. Foot fall – Foot fall or foot traffic is the key consideration while selecting location for setting up the business. A location should be the centre of the market and impressive enough to attract the customers. Business should be set up in the area where the customer traffic is high.

c. Accessible – Business location should be accessible and in reach of the customers. It should not be located on some congested or busy roads and markets. There should be proper space for parking. It should also have facilities like escalators and lifts for disabled customers.

d. Style of business – Business location is to be chosen according to the style of business. For example- space in malls or airports are good location for the retail business whereas for manufacturing business, location should be away from residential areas.

e. Competition – Competitors are considered while considering a good location for the business. If one is confident to perform better than the competitor then he should select the location near to the competitor, otherwise, he should select a location with less number of competitors around him.

f. Compatibility – The business location should be compatible with the market and should be in reach of the market. It should not be established far away from the raw material market or the consumer market as otherwise; it would cost huge transportation expenses.

g. Signage – The business location should have the proper space and area for the installing the signage as they are displayed to attract and guide the customers towards the location.

2. Difference between brick and mortar stores and online retail stores

Basis	Brick and Mortar Stores	Online Retail Stores
1. Meaning	These are the stores which are built and located physically in the market and they operate offline.	These are the e-stores that exist in the cyber space and operate online through internet.
2. Customer Reach	They have limited customer reach and customers residing near to the store or in the close locality would visit them.	They can reach to the unlimited number of customers as they are not bound by the physical barriers.
3. New customers	New customers are difficult to attract as they depend on the people passing from the street.	They can attract new customers easily as they can reach out to them through internet.
4. Costs involved	They generally involve more costs as the store is to be built and renovate on intervals to attract customers.	They are easy and cost effective to set up as they do not require physical space or structure and can become operational even from one’s home.
5. Working hours	They are limited to the opening hours.	They generally operate 365 days a year and 24 hours a day.

People shop online because of following reasons:

1. Online shopping saves one’s time of getting ready and travelling to the stores physically.

2. Online stores are less stressful as customers do not have to face crowd and traffic issues.

3. Online stores generally provide discounts on the shopping, which seems attractive to the customers.

4. A wide variety of products are available in e-stores as compared to the physical stores. This leaves the consumers with a wide variety of choices.

5. Online stores provide easy return or replace policies.