Location of business
The location or relocation of a business needs to take account of many factors, for example, to have more space for expansion, to reduce overheads or improve transport links.
Nestle, the world’s leading Nutrition, Health and Wellness company, is about to move its UK Headquarters after more than 40 years in the same location. The company will move by the end of 2012 from high-rise offices in Croydon, South London to near Gatwick airport. The new low-rise accommodation is set in a business park environment and, importantly for a global company, is closer to international air links. (BBC, 5th January 2012)
For Enterprise Rent-A-Car, branch locations are selected to be as close as possible to the company’s customer base. Car rental is a highly competitive market, so making it easier for customers to access the service demonstrates high quality customer service, as well as differentiating the business from competitors.
Enterprise’s branches need to meet the needs of two different markets: home/city branches deal with personal and business customers requiring vehicles for leisure purposes or accident cover; airport locations provide services for customers flying in or out of an area.
Therefore, it also assesses branch locations with a view to improving profitability. This might be through either increasing sales or reducing costs. Keeping close to customers also reduces the costs involved in time and fuel required to reach customers or vehicle repair centres. In addition, Enterprise aims to make new branches as environmentally-efficient as possible to reduce energy costs.
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