Location analysis is typically executed when setting up a business, in the context of location expansions or relocations. It is the attempt to identify the most appropriate business location for the planned project based on individual corporate requirements. Due to the high complexity and long-term impact, location decisions are not only one of the most important but also one of the most difficult business challenges. Therefore, a careful location analysis is of crucial importance.
The realisation of a location analysis is generally operated by the use of so-called scoring models. Traditional approaches of scoring models can be distinguished between profile method and utility analysis. The profile method starts with a listing of relevant location factors for the intended project. Then, profiles are created for each potential business locations assessing identified location factors in terms of their characteristics. The location with the highest total score results as the most appropriate one. In addition to the assessment, the utility analysis includes a weighting of location factors in terms of their importance for the company. Assessment and weighting then are summarised in so-called part-worth utilities. The business location with the highest part-worth utility is the most appropriate site.
These traditional approaches of location analysis involve a major drawback. The selection of potential business locations is mostly based on experience or selective analyses. A consideration of all potential business locations does not apply. Besides, provider of location analysis software programs create their analysis usually only for locations that are demanded by the client. The problem is that companies usually don’t know for which location they should buy an expensive location analysis. In fact, the difficulty and actual effort of a location analysis rely on the consolidation of data and the comparison of location factors across different business locations. At this point the location analysis of My Business Location comes into play. This location analysis provides the possibility to filter, sort and compare registered business locations according to your most relevant location factors, leading to the most appropriate business location for your individual project.