Location factors

Location factors are economic determinants for the choice of location.

These are the characteristics of a location that influence the achievement of a company's goals. Catalogs of location factors contain those characteristics of a location that have an impact on the level of costs, revenues and the financial situation of a company.

For the industrial company, the cost-economic effects are in the foreground; in the trading company, the sales-economic aspects are also of primary importance.
One way to classify the economic determinants for site selection is as follows:

Input-related: Soil, raw materials, energy supply, labor market conditions, external services, suppliers, communication links, etc.

Throughput-related: Political, social, technological, geological and climatic conditions.

Output-related: Proximity to the market, competition, contact with sales intermediaries, state sales assistance, removal of residues, etc.

There is also the possibility of dividing the location factors differently (Müller-Hagedorn). The most important are:

Demographic factors: Population and distribution, population structure, employment and social structure.

Economic factors: Einkommensverhältnisse, Einkommensverwendung, Market potential.

Psychological and social psychological factors: Lifestyle, consumption habits, mentality.

Infrastructure: Urban planning, traffic.

Competitive conditions: Competitive situation and measures.

Property evaluation: Assessment of the business and the location.

Location-dependent costs: Procurement and sales, buildings and maintenance.

Other factors: Legal regulations, immissions.

Ein weiteres Schema teilt ein nach Absatzorientierung: Diese ist insbesondere für den Einzelhändler in Fragen der Location policy wichtig. Dies gilt sowohl für die Abnehmerorientierung, wobei Bedarf und Kaufkraft im Vordergrund stehen, als auch für die Konkurrenzorientierung. Eine Wichtige Größe ist das Absatzpotenzial. Für diese ist wiederum die Abgrenzung des Einzugsgebietes wichtig.

Traffic orientation: For many retailers, good accessibility and the availability of parking spaces are important.

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