Main Location Criteria for Retail and Service Businesses Research Paper

Main Location Criteria for Retail and Service Businesses - Research Paper Example A careful and wise decision to choose a convenient and right location is critical to building competitive advantages too (Zimmerer, Scarborough and Wilson, 2008, p. 515). Retail stores and restaurants have to be located near to customers so that they can reach to the business easily, whereas manufacturers may find locations remote from the customer base in order to be cost-effective due to the availability of raw materials, availability of labor, taxes, regulation and overhead costs (Pinson and Jinnett, 2006, p. 39). It shows different business enterprises will be influenced by location element differently. Nearness to customers is highly important and critical to creating a competitive advantage for small retail whereas being remote from the customers to take cost-effective advantages is a way to achieve competitive advantage to the large manufacturers. A retail business that attracts a large number of customers due to its nearness to the people will obviously enjoy more advantages than its competitor who is away from customers and finds less number of customers. As Pakroo and Pakroo (2008) emphasized, the entrepreneurs are required to figure out how a particular location selection will or will not contribute to the success of the business and how it makes economic sense (p. 50). The location will make economic sense when it is really going to pay to the entrepreneur and generate more earnings than in the case if the business is located in some other locations. For a real estate business, the best three things are ‘location, location, and location. Katz and Green (2009) hold an opinion that the same is true with a small and service business too (p. 357). Location is meaningful when it is a good location for business so as to attract a number of visitors. Katz and Green (2009) emphasized that a good location is in fact highly dependent on the budget an entrepreneur can afford, the business philosophy and marketing niche he is seeking (p. 357).   Ã‚