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Factors Affecting Location📍 - Coggle Diagram
Factors Affecting Location📍
Manufacturing businesses
Need to be near to cut transportation expenses.
Need to be near to transport perishable goods.
Raw materials/components
Government influence
Grants/subsidies.
Restrictions on dumping, etc...
Transport and communication
To be able to transport product easily.
Power
Need a reliable source of power to operate effectively.
Water supply
A lot of water is needed in the production process (e.g. cooling, cleaning)
Cost of water.
Climate
E.g. to reduce heating costs in a warmer climate.
Some climates are required to produce certain items.
Retailing businesses
Do shoppers go there?
What kind of shoppers go there?
Nearby shops
Competitors.
Mass market.
Gap in the market.
Customer parking available/nearby
Convenience for the customer.
Rent/taxes
The more popular the site, the more expensive.
Access for delivery vehicles
For delivering goods.
Security
If the area is insecure
o Goods will be stolen.
o Insurance will be reluctant to insure the shop.
Laws restricting the trade of goods in certain areas.
Service businesses
Whether customers require: o Direct contact.
Is it convenient for customers to go the business?
Will the service arrive at customers' houses in time? o No direct contact needed.
Mail
Internet
Customers
Personal preference of owners
Near their homes.
T echnology
Technology allows businesses to locate in cheaper sites. o Telephone.
o Internet.
o Transport.
No need to be near customers.
Availability of labour
Need to locate to sites where skilled labourers live.
o Labourers may relocate to be near the business.
Rent/taxes
If the business does not need direct contact with the customer, then it could locate in cheaper areas.