Scribd
Upload
65 views16 pages

Location Strategy for MBA Students

The document discusses factors that influence the location of economic activities. It identifies four main types of economic activities - primary, secondary, tertiary, and quaternary - and notes that each has its own set of location factors but some general factors include transportation access, market proximity, and availability of resources and labor. Globalization has made location decisions more complex by changing business operations and markets. Choosing the right location can provide competitive advantages through economies of transportation, scale, scope, agglomeration, and density. Accessibility is one of the most significant location factors as it affects the ability to reach customers, materials, and markets.

Uploaded by

Ajay Bhasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
65 views16 pages

Location Strategy for MBA Students

The document discusses factors that influence the location of economic activities. It identifies four main types of economic activities - primary, secondary, tertiary, and quaternary - and notes that each has its own set of location factors but some general factors include transportation access, market proximity, and availability of resources and labor. Globalization has made location decisions more complex by changing business operations and markets. Choosing the right location can provide competitive advantages through economies of transportation, scale, scope, agglomeration, and density. Accessibility is one of the most significant location factors as it affects the ability to reach customers, materials, and markets.

Uploaded by

Ajay Bhasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 16

TRANSPORT AND LOCATION

Ajay Bhasi
Roll No : 02
S3 MBA
LOCATION
The location of economic activities is fundamentally based on two
geographical concepts
a) Site
b) Situation
GLOBALIZATION LOCATION AND
TRANPORT

Globalisation brought changes in business operations and


market
Operations have become complex
Development of new strategies -production and distribution
LOCATION DECISION

The location of economic activities is mainly dependent on


A) The nature of activity itself
B) Location factors
a) Location Factors
b) Nature Of Activities

Each type of economic activity has its own set of location factors but
there are certain general factors:
a) Primary Economic activities : related to environmental endowments
: Strong reliance on transportation
b) Secondary economic activities : It implies a close web of location
factors depending on the industrial sector
: it is an important cost factor
: Globalization has made the situation
more complex
LOCATION FACTORS

c) Tertiary Economic activities : Bound to market proximity so retail


oriented.
: Capacity to sell a product or service is
the most important location requirement.
: Consumer proximity (as well as their
level of income) is essential and is directly related to sale levels.
: Maximize sales revenues.
b) Nature Of Activities

d) Quaternary Economic activities : Related to high level services


(banking, insurance), education, research and development; dominantly
the high technology sector.
Can be located almost anywhere (telecommunications and amenities)
ACCCESIBILITY AND LOCATION ECONOMIES

Outcome of transportation activities


Represent the most significant effect on location
Economic activities are interrelated
More accessibility more customers
ACTIVITIES AND ECONOMIES

By opting for a specific location and type of facility a firm can obtain
competitive advantage seeking economies of production, distribution
and consumption
Economies of transportation
Economies of scale
Economies of scope
Agglomeration economies
Economies of density
a) Economies of Transportation

Relates to benefits the lower transportation cost may grant to a


firm
b) Economies of Scale

Relates to benefits derived from scale that offer to activity sectors.


c) Economies of Scope

Benefits related to range of goods


d) Economies of Agglomeration

These economies are related to proximity other activities


Cluster effect
e) Economies of Density

Benefits derived from increased density of features on cost of


assessing them
CONCLUSION
Location can be explained as the physical place where a business
decides to harbour its operations.
Choosing the right location is the key to success of the business.

Accessibility Site
Land, utilities, visibility,
Labor, materials, energy,
Location transportation (local access),
markets, suppliers / customers amenities

Meso Micro
Socioeconomic Environment
Capital, subsidies, regulations,
taxation, technology

You might also like