Economic Impact of Store Locations, Essay Example

It is rather understood that in the field of establishing good business, finding a good location plays a great role in determining the overall course of development and growth that the business could embrace in the industry, even towards the future. Location speaks towards the concept of market influence. Finding a good location that could be accessible to all members of the community being targeted by the business is essential especially if the business offers a specific set of products that would only respond to a particular sector of the market. What makes this condition rather important to give attention to, especially for small scale businesses is that of the fact that they have to find a way to meet up with the market they hope to influence and work along with the said group of individuals accordingly.

Relatively, Porter’s five forces of analysis strongly determines location as one of the most important elements of business development and growth. The reason behind this is the fact that it determines the course of progress the business is expected to take into account especially in relation to two of the elements examined in the analysis model mentioned. The said two factors include the bargaining power of the suppliers and the threat of substitutes. The location of a business shall determine the role and culture that the suppliers could take into account as they deliver what the business wants. It shall also determine the pricing and the demand system control that the suppliers take into account in relation to such connection with the business.

The second factor is that of the threat to substitutes. Businesses that are strategically placed in good locations are not so much affected by such threat especially if they are the ones to be easily reached instead of the ones that are newly emerging in the market. Practically, the threat to facing new entrants in the market gives small scale businesses a sense of competition, something that cannot be fully controlled especially in relation to how the market would respond to what the new entrants in the industry are willing to offer. What makes such conditions of operation rather affective on the status of the organization is the fact that the business itself is able to immediately respond to what the target market wants and what the people want from what the business offers. Amidst threat, it is the strategic location of the business that gives it the power of control and influence on the market the organization hopes to serve.

For instance, in relation to the established business operation between a jewelry store and a discount store, it could be realized that these businesses are expected to be small in scale. Given the fact that they offer specific types of products suggests that the businesses are able to provide service to only a specific group of individuals in the market. Given such aspect of operation, both types of businesses need to make sure that they are located in areas that are specifically effective in getting the attention of the market they hope to affect. Research and strategic evaluation of location-choices should be handled accordingly. This insists on the need for the administrators to become more enthusiastic in finding good locations and evaluating the attention that the market gives in these areas. Seeing and observing how the people respond to businesses and particular products found in the area could suggest a good sense of implicative sense on how the business is likely to fair especially in the face of distinct competition in the future. Being able to plan for such mater gives the organization a better chance of developing good options of growth amidst the massive competition that may be already existing in the market, and the one that might still come along in the industry in the future.