"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 other kinds of technology becomes."
Discuss the extent to which you agree or disagree.
While many people will agree to it that the location has been traditionally and will continue to be the most important determinant of a business success , but if it were the most important determinant , then by just choosing the location , the businesses would have flourished. Since world today is a global village and experience shows that there are other factors which are important for success , I feel that the location is not the most important determinant for business success in today's competitive global village. I have reasons to support this.
The primary reason for the same is that with advent of the computer technology , there are cases that the firms in business with each other have not seen the location and have not even personally met , but through internet , these firms are doing business. The advantage is the firms are able to save the additional travelling cost to collect the orders , as was done traditionally. Dell is the popular example of this. This firm does not operate through dealers and though , its location is far off and may not be known , the orders are placed through net and even the services are provided through net.
Another reason for the same is that experience shows that even when the location is the best or the location is superior to other competitors , the location does not guarantee the success of the business. The other factors such as quality , cost , service are important. This is because even though the location of the business is not good , the company if can provide good quality and service to the product , the business is likely to grow. There are many examples to support this. We have seen in the supermarket that even though the location is good for two similar businesses or brands , according to the logic of the speaker , both businesses shall succeed , but we have seen many a times that one business is more successful than the other even though the location is the same. This supports that it is not the location of the business rather other factors such as quality , cost and service which differentiates the success of one business over others.
Admittedly , location is important for certain specialized product markets . Example for this is that if there is a specialized market for certain product , then people in the city will be aware of the same market and if the new business markets the similar product from the new market , new business has o exert more in advertising and there are chances that initially the business may not be successful. But as soon as people become aware of the better service or quality of the product , then it is likely that the business will expand. The new business has to offer differently to the market. The new business has to identify its USP and encash upon it.
In addition , the location cost may be so high that the new business is not able to withstand the fixed cost interest and business may close down. So , just investing in the right location is not always viable.We have seen that the established business locations have high rental or selling costs and the chances are that the new entrepreneur does not have the required resources. The new entrepreneur invests by taking the loan but cannot withstand the interest cost and other operating costsand the new business may close down.
In sum , though location was the most important determinant for the success of business in the past , in today's competitive global village market , with the advent of the computer technology , location is not the most important determinant . Rather the other factors such as quality , cost and service are the important factors towards the success of the business .
Discuss the extent to which you agree or disagree.
While many people will agree to it that the location has been traditionally and will continue to be the most important determinant of a business success , but if it were the most important determinant , then by just choosing the location , the businesses would have flourished. Since world today is a global village and experience shows that there are other factors which are important for success , I feel that the location is not the most important determinant for business success in today's competitive global village. I have reasons to support this.
The primary reason for the same is that with advent of the computer technology , there are cases that the firms in business with each other have not seen the location and have not even personally met , but through internet , these firms are doing business. The advantage is the firms are able to save the additional travelling cost to collect the orders , as was done traditionally. Dell is the popular example of this. This firm does not operate through dealers and though , its location is far off and may not be known , the orders are placed through net and even the services are provided through net.
Another reason for the same is that experience shows that even when the location is the best or the location is superior to other competitors , the location does not guarantee the success of the business. The other factors such as quality , cost , service are important. This is because even though the location of the business is not good , the company if can provide good quality and service to the product , the business is likely to grow. There are many examples to support this. We have seen in the supermarket that even though the location is good for two similar businesses or brands , according to the logic of the speaker , both businesses shall succeed , but we have seen many a times that one business is more successful than the other even though the location is the same. This supports that it is not the location of the business rather other factors such as quality , cost and service which differentiates the success of one business over others.
Admittedly , location is important for certain specialized product markets . Example for this is that if there is a specialized market for certain product , then people in the city will be aware of the same market and if the new business markets the similar product from the new market , new business has o exert more in advertising and there are chances that initially the business may not be successful. But as soon as people become aware of the better service or quality of the product , then it is likely that the business will expand. The new business has to offer differently to the market. The new business has to identify its USP and encash upon it.
In addition , the location cost may be so high that the new business is not able to withstand the fixed cost interest and business may close down. So , just investing in the right location is not always viable.We have seen that the established business locations have high rental or selling costs and the chances are that the new entrepreneur does not have the required resources. The new entrepreneur invests by taking the loan but cannot withstand the interest cost and other operating costsand the new business may close down.
In sum , though location was the most important determinant for the success of business in the past , in today's competitive global village market , with the advent of the computer technology , location is not the most important determinant . Rather the other factors such as quality , cost and service are the important factors towards the success of the business .
