Tuesday, January 22, 2013

Location, Locations, Location!!


Economic clusters have since become the holy grail sought by governments wanting to grow their economy and generate jobs. Businesses that set up or move to such clusters can find that they see accelerated growth and success:
  • potential customers start to prefer the location as a place to find suppliers since the location becomes synonymous with quality and choice
  • businesses discover that finding quality suppliers and partners that can help them innovate their products becomes easier
  • the large number of competitors forces businesses to raise their game
benefits to a business from locating in a cluster

Explain This using a concrete example, and why location is important to financial success.

14 comments:

  1. The city of London is a very big economic cluster. It is worth many millions of dollars. The main source of income is financial services. Location is important for a number of reasons. It is important to the customers because they know that these areas have good products and continue to go back to that area. It is better for the suppliers because the stores are localized and it is easier to get business. The competition between companies is good for them because they increase their price and end up with more customers in their store because of these prices.

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  2. Ubaldo and Vivi/5thJanuary 22, 2013 at 1:36 PM

    Location is important to financial success, because a cluster can not survive if its resources are not needed. If people don't need something, they would not buy it. In LA, for example, there is a higher demand for jewelery than in SF because they have a huge jewelry district. A jewelery cluster would be more likely to flourish in LA than in SF in that aspect.

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  3. One example of an economic cluster is Sequoia Station. Sequoia Station is a local cluster. It is a group of convenience stores, clothing stores, restaurants, etc. This group of stores is directly next to the Redwood City train and bus station. This is a very good location because of that. Sequoia Station is one of the first things people see when they get off of the bus or train at the RWC Station. It is also very close to Downtown Redwood City. All of these factors in the location are very important because location is important. Even if a store is fantastic, if it is in an inconvenient location people will not go to it. If a store is in a convenient location, it is much more likely to get business. It also helps to have many other stores and restaurants, etc., around to increase the business. Having different kinds of stores around increases the chances of getting business because it decreases the time spent by the consumer of going from one store to another. People like convenience and not wasting time, so if all of their errands are in one place, they will often choose to go there instead of somewhere else. Location is extremely important and it must be thought about when starting a business. Many businesses have gone out of business simply because they did not have enough foot-traffic at the location they chose.

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  4. Location, Location, Location is important to businesses because its all part of the cluster system, which helps businesses grow successful and have more customers. One example of this could be downtown redwood city, in downtown there are a lot of businesses, like the Century 21 movie, which is in the middle of downtown redwood city and it attracts a lot of people who want to enjoy a good movie and it also helps the other businesses like restaurants and small stores. Businesses in a good location needs to also have a good supplier in order to attract more customers so they can keep the business going. If a businesses has a bad location and a bad supplier then it would be in a good position.

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  5. Quynh/ada/amanda/5January 22, 2013 at 1:48 PM

    We believe that the three reasons why location is important to business is reputation, security and convenience. First, for reputation, the people want to buy stuff from brand name like Guess, Gucci, or LV. It seems to the customers that those brand carry high quality and beautiful products. So any store that is located near those stores will immediately be perceived as a high end store. Secondary, everyone wants to be safe. They want to live in a safe house, work in a safe city and shop in a safe mall/store. If you compare Hillsdale Mall and a local store in the ghetto, you will choose the mall of course; because you want to be safe while shopping. Third, people sometimes prefer convenient stores than a reputable store that takes 2 hours to get to. Evidently, we would prefer to have a quick lunch at Panda Express near the school than to drive to a sushi place on Woodside. If a business location can achieve those 3 priorities, we are sure that it'd be popular among customers.

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  6. The reason why we believe that the location is important is because it is based on customers, suppliers, and competitors. It depends on customers because you need people to buy products. For example, if you want to put a "mexican market", you have to make sure that in the area where you want to put it are a lot of "mexicans", so you would have people who would be interesting in buying your products. Suppliers are also important because you need to make sure that you have a place where you can buy your supplies when you ran out of them. Finally competitors are very important too because you need to put the marker in a place where there are no other markers near by, so you won't have competition.

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  7. In order to have financial success, location is essential. Six crucial elements are needed to have a thriving Economic Cluster. These include Social acceptance, Networks, Education, Legal, Financial, and Infrastructure. If there are institutions, banks, and competition between the companies than the sales prices go up leading to more income. Toulouse, France's Aerospace is a big economic cluster making 10 billion euro's. This location has all the six elements resulting in major success.

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  8. Katie, Blair, Marissa/5January 22, 2013 at 2:05 PM

    Location is important to Financial Success because it can supply the needs of the people where they are needed. For example, a surfing company would do a lot better in California then it would do in Nebraska. This is because there is a higher demand of surfing equipment near the water, where as there isn't in Nebraska because they are no where near the ocean. Another example is, where is the competition? You do not want your business close to another business that offers the same things.

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  9. Location is top key for financial gain. The reason why we say this is because in business presentation and convenient location makes people spend more. For example our Downtown in Redwood City, it is located in the center of everything and all the big brand businesses are set there because they can afford to station there and from experience they know that they will be very profitable because of how impacted Downtown has become. This is the same with everything else including states and cities. It can be more expensive and more profitable if you are stationed near amusement parks, downtowns, malls, and much more. To many business men this is called rich soil but, to those who are new at the game it is most likely called debt. We say this because when you are located in rich soil you spend a lot more then locating else were sometimes 3 to 5 times more. Business is business but location is definitely key to success.

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  10. Favi/Clayton/Gloria/5January 22, 2013 at 2:30 PM

    We agree with Quynh that Location depends on security, connivence and reputation. People want to be able to buy and sell in a safe place that has a lot of movement Just in case, someone comes to rob there can be witnesses and maybe good samaritans. Connivence is the main one, when opening a business and it is not convent to park, you will find another store with that same product. When a store has a good reputation of having the best wings in town for cheap, everybody and their mother is going to be there. Location, Location, Location is the most important, but these 3 things are the what holds Location up. For example, if we open up a wing restaurant in the middle of downtown were it is lively, easy to park and we have a good reputation, the people will come pouring in clumps for a boatload of wings. This is why Wingstop in San Carlos Marketplace is extremely successful, Safety, Connivence and Reputation.

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  11. Jose/Bogart/Kay/5thJanuary 22, 2013 at 2:33 PM

    Financial success begins with location. Location is in the circle of Economic Clusters it is known as the place to look for a supplier. According to this article the better the quality of the suppliers the more customers the cluster will have. The cluster has to have competitive quality and prices. Six attributes also apply to the Economic Cluster; financial, legal, education, networks, social acceptance, and infrastructure. These attributes cause success. Why does location matters for business matter? it matters because if you're starting up a business, the location you choose should have characteristics as an economic cluster, then that is the place to begin and have a great start. With a well established location, reputation, the quality of the product and price will attract more customers.

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  12. A good example of an economic cluster would be the Hillsdale shopping mall. It's across the street from caltrain and there are so many stores inside the mall. There are stores near the mall to get business, for example the guitar center is near the mall attracting customers. The mall is a magnet for getting people to buy stuff. Have you ever seen a Gucci store in the ghetto of a city? I don't think so. Location is a big deal for business. If you have a store or a company in a shady area people are not going come to buy stuff because it's not a popular area for shopping. Shopping in a non brand store displays that you are poor and don't have money to buy rich people things.

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  13. An example of economic cluster are the fast food restaurants they are all over the place and because of their low prices they are very competative with each other and other higher priced restaurants. In a high income neighborhood and streets you would most likely find healthier choice restaurants than lets say Mc Donalds. If you want to open up a fast food restaurant you have to think about your target consumer and if they are near the area. Opening a fast food restaurant in an area predominantly vegetarian and healthy your business is not going to do very good at all. Were as in a low income neighborhood is a lot of the times a cheeper alternative to buying food. This would be the best bet to get a lot more people to buy your fast food.

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  14. Heder and Vanessa/5January 24, 2013 at 1:56 PM

    Location is essential to the business world for many reasons. If your business is located in an area where a specific race or ethnic group is large your business will thrive if you sell items from their culture. For example a Latino store would be more successful in a state where more Latinos live than a state where not a lot of Latinos live. Suppliers and consumers go hand in hand because with out suppliers you don't have products to sell and if you don't sell you won't have customers and that means no money.

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