1. What is a location analysis?
A location analysis is a systematic investigation of a geographic location to determine its suitability for a business, branch, or property. It evaluates economic, demographic, and infrastructure factors to enable informed decisions.
A simple and effective way to analyze locations in Germany is our Business Location Explorer ©.
2. Why is a location analysis important?
The right location analysis can be crucial to a company's success. A detailed analysis helps minimize risks, reach the optimal target audience, and ensure long-term economic profitability.
3. What factors are crucial for a successful location analysis?
Choosing the right location is crucial for companies, as it can significantly determine the success or failure of a project. Whether it's establishing a new business, expanding an existing company, or relocating a location – each of these situations requires careful consideration. A comprehensive location analysis takes into account various location factors.
Each location factor therefore has a different weighting depending on the company's objectives and business model. Only through comprehensive analysis and strategic planning can a location be selected that ensures long-term competitiveness and growth.
4. How is a site analysis carried out?
- Objective: Defining the site's requirements
- Data collection: Analyzing population statistics, competitive factors, rental prices, etc.
- Site evaluation: Comparing potential locations based on relevant criteria
- Decision and implementation: Selecting the optimal location and planning the next steps
5. What methods are there for location analysis?
Various methods can be used for a thorough location analysis:
- ABC analysis: Evaluating locations by priority
- Scoring model: Scoring relevant location factors
- SWOT analysis: Identifying strengths, weaknesses, opportunities, and threats
- GIS analysis: Using geographic information systems to evaluate locations
Our Business Location Explorer © combines the advantages of these various methods.
6. Avoid common mistakes in site analysis
Some of the most common mistakes in location analysis are:
- Lack of or insufficient market research
- Incorrect assessment of the target audience
- Underestimation of the competitive situation
- Failure to consider site operating costs
- Lack of flexibility for future developments
7. Which tools and data sources support location analysis?
There are numerous helpful tools and data sources for a successful location analysis:
- Statistical offices (e.g., Federal Statistical Office, Chamber of Commerce and Industry reports)
- Geographic and market data (e.g., Google Maps, OpenStreetMap, location analysis software such as our Business Location Explorer ©)
- Business platforms (e.g., industry associations, regional economic development agencies)
- Social media and customer reviews to assess demand
8. Should I conduct a site analysis myself or hire experts?
The conduct of a site analysis depends on the scope of the project. For small companies, an independent analysis may be sufficient. For larger investments or complex site decisions, it is advisable to engage experts or specialized consulting firms.
9. How do location analyses differ between different economic sectors?
The economic sector plays a key role in the location analysis, as the importance of individual location factors varies. For example:
- Factors for manufacturing companies: availability of qualified personnel, infrastructure, and energy costs
- Factors for retailers and chain stores: customer frequency, visibility, and accessibility
- Factors for logistics companies: connection to transport routes and proximity to distribution partners or end customers
