Type of business and their reason for relocating

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Key factors impacting location decisions are the type of business and their reason for relocating. If a company is looking to expand, they will want to go far enough away from any current location to make it easier to reach new customers, but also close enough that shipping and transferring from location to location is possible. If a company is entering a new market entirely, they will judge highly on the demographics of an area. A name brand, expensive clothing shop would not do good in a low-income area; likewise a fast food restaurant may not do as well in an upper class neighborhood.

Regarding the example, a fast-food chain in India would want to locate in a high traffic area where they will be stopped often. Right around businesses or clubs/bars would be ideal to be easy access for hungry people looking for a quick bite. A software company would look more for a cheaper rent as to minimize costs. People looking for a software company usually have a reason to go there and will make the trip, even if it is a little out of their way.






Key decisions when deciding on a location can be many things but some of the more important factors include proximity to the market customers, proximity to raw materials, employee skills and wages and also cost. All these factors weigh in on how profitable and area will be because you do not want to be spending a ton of money on labor  at a fast food place, you want to be in close proximity or your resources as well as your customers because people are not going to travel thirty minutes for a chicken sandwich. You also do not want to go to a place that will cost to much to even get the place up and running. All these factors need to be looked at together to find out if certain places are worth it or not.

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