Internal Influences - Location

A business chooses its location. This is an internal decision over which a firm has full control. 

The firm cannot control what happens in that location (these geographic influences are external), but it chooses where it establishes its operations.

Location can be critical for business success but depends upon business activity (sector, output, Place / distribution strategies (online). 

Considerations include:

• Visibility—The extent to which location can be seen by consumers resulting in higher revenues.

• Cost—The cost is dependent upon these other factors: high visibility / proximity to customers and suppliers results in higher cost of location.

• Proximity— To customers (cost  / convenience / delivery), to suppliers (input lead times, cost of delivery, communication) and to support services (accountants, lawyers).