Choosing A Location of a Business

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Choosing A Location of a Business

Location of Raw goods

Some companies like steel, iron and coal manufacturers choose a

location because the raw goods that they need are already located

there. If they locate where the supplies are they save a lot of money

on transporting goods.


Other companies like dentists, doctors, lawyers, retailers etc, locate

where the market is. This would increase profit.


Some firms need a skilled workforce to manufacture the product the

make. So they locate where there is a skilled labour force. Other

firms locate somewhere, where there is a high unemployment rate; this

means they save a lot of money on wages because people who need a job

will work for any amount of money.

Transport and communication links

Firms who export and import goods need to be close to sea and

airports. Good road and rail links are needed to transport goods

around the country.

Economies of concentration

Sometimes being near your competitor can work in favour for a company.

This is because there will be a skilled workforce near by, also

suppliers will locate where the business is. This cuts down on

transportation costs. Customers will also know where to come.


Governments often pay global companies locate in their country. Local

councils will also cut taxes for companies who locate in an area of

high unemployment.

Industrial inertia

Companies who have been in one place for a long time might not want to

relocate, even though it might work out cheaper in the future.

Personal reasons

Some companies want to work in a nice environment.


Industries such as agricultural ones need to be in a hot climate to

grow their products.

Location of Cameron Balloons


Cameron Balloons are located in Bedminster, near Bristol. This not

only gives it national status, but also international status as well.

This attracts customers from all over the world, which intern

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