"Location has traditionally been one of the most important determinants of a business's success. The importance of location is not likely to change, no matter how advanced the development of computer communications and others kinds of technology becomes."
Any successful business is a combination of multiple key element. With the advancement of IT and modern communication channels, whether or not location is one of the most important elements is an interesting discussion topic. In my view, I think the location of business remains one of the most important determinants of a business's success.
My primary reason is that a successful business need to be highly recognisable and identifiable by its target customers. A good location, virtual or physical, offers the business additional competativeness by being the easiest to locate, to identify, and to recognise. This position impact from the location is in another way evidenced by the astonishing price paid by companies for top locations, which would include Ginza of Tokyo, Time Square of New York City, Picaddily Circus of London. The premium for the scarcity value of virtual prime location is also demonstrated by prime time TV advertisement cost as well as paid ranking under google advertising.
While some may argue that modern communication and technology has made physical location less important, I believe it's still equally important for the long-term succcess of a business. Companies like Apple and Sony did not start as a high street store, they became successful because the advanced technology and user experience their products offer. However, once a brand became recognised, companies would start to locate them in monumental locations around the world to demonstrate its global presence. Such presence in monumental locations is another signal of success to their customers, as well as to their investors.
In conclusion, I think it's fair to say that a successful business may not start with a prime location, but a business will need to consider the location element if it is to be successful and competative for a long term.
Any successful business is a combination of multiple key element. With the advancement of IT and modern communication channels, whether or not location is one of the most important elements is an interesting discussion topic. In my view, I think the location of business remains one of the most important determinants of a business's success.
My primary reason is that a successful business need to be highly recognisable and identifiable by its target customers. A good location, virtual or physical, offers the business additional competativeness by being the easiest to locate, to identify, and to recognise. This position impact from the location is in another way evidenced by the astonishing price paid by companies for top locations, which would include Ginza of Tokyo, Time Square of New York City, Picaddily Circus of London. The premium for the scarcity value of virtual prime location is also demonstrated by prime time TV advertisement cost as well as paid ranking under google advertising.
While some may argue that modern communication and technology has made physical location less important, I believe it's still equally important for the long-term succcess of a business. Companies like Apple and Sony did not start as a high street store, they became successful because the advanced technology and user experience their products offer. However, once a brand became recognised, companies would start to locate them in monumental locations around the world to demonstrate its global presence. Such presence in monumental locations is another signal of success to their customers, as well as to their investors.
In conclusion, I think it's fair to say that a successful business may not start with a prime location, but a business will need to consider the location element if it is to be successful and competative for a long term.
