Location Of

Service
Sector
Business
Location of industry :
• Location is a particular place or position.
• Location of the business is considered
 when its first being set up
 when the present location proves unsatisfactory
• For an example:
 business changing its aims
 objectives to expand
 increase profits may
result in the location no longer being suitable and thus leading to
a change in its location
Factors affecting the
location of a service
sector business
 Factors
• Customers
• Technology
• Availability of labour
• Climate
• Near to other businesses
• Rent/Taxes
 Customers
• Important to set up near the customers when direct contact between the
customer and business is required
• Quick response time is needed to serve the customers e.g. plumbers,
electricians, beauticians…
• Business don’t need to be near :
 No direct personal contact necessary, can be contacted with phones,
internet etc. These can be services like online selling like Ali Baba,
Amazon etc.
• Increase in the advancement of technology it is not compulsory for every
service to set up near the customers
• Personal preference of the owner (near to his home)
 Technology
• Allowed services to locate away from the
customers
• Services are conducted via phones , internet etc.
• So with the use of new technology the business
can locate anywhere
• May choose the outskirts of the city to take
advantage of cheaper rent
 Availability of labour
• Services businesses requiring large number of
employees can not locate in remote areas and have
to locate in large towns
• Have to locate near to where that particular labour
needed for the job is found
• In most case the labour move from places near to
these industries in order to acquire jobs e.g.
Rural to urban migrations shifting from non industrial
to industrial cities
 Climate
• Affects some service businesses
• Particularly linked with tourism
• For an examples hotels, tourist
guides, etc.
Near to other
businesses
• LARGE BUSINESS REQUIRE
HEAVY SERVICE EQUIPMENT
AND FOR THE REPAIRS BUSINESS
NEED TO BE NEAR BY TO
QUICKLY RESPOND TO THE CALL
 E.G.BANKS NEED TO BE NEAR
BUSY AREAS FOR THE CONVIIENCE
OF THE CUSTOMERS, HOWEVER ITS
LESS IMPORTANT DUE TO ONLINE
BANKING
 Rent/Taxes
• Locating on the
outskirts decreases the
taxes and rents of the
business and thus
decreasing the cost of
the business leading to
increase in their profit
Activity on page number
246
Thankyou!
Presentation made by: Fatima Bilal
And Waffa Batool (O2)