Strategic Business Location & Product Life Cycle Stages
Classified in Economy
Written on in 
English with a size of 2.37 KB
Strategic Business Location and Dimension
Choosing a suitable place for company implementation requires assessing a number of external variables:
- Market Demand: Analyze if there is interest in the product in the desired area and assess the competitive landscape.
- Raw Material Procurement: Evaluate the quality, cost, and ease of obtaining raw materials.
- Labor Market: Consider potential employees, their skills, and labor costs.
- Communications and Transportation: Assess accessibility for transport and communication with other businesses.
- Utilities and Supplies: Information on the availability and cost of essential supplies for company operations.
- Construction and Land Costs: Note that prices vary significantly from place to place.
- Legislation and Regulations: Familiarize yourself with legal regulations, restrictions, and available public support.
- Investment and Funding: Ensure access to financial institutions and ease of securing capital.
- Regional Economic Development: Assess the overall economic development of the chosen region.
Understanding Business Dimension
Dimension refers to the production capacity of a company and is determined by a series of factors, including technology, the number of workers, and market demand. To decide the optimal size of the business, one must understand the required capacity and its relation to the chosen location.
Product Life Cycle Stages Explained
Understanding the stages of a product's life cycle is crucial for strategic business decisions:
- Introduction or Launch Stage: This is the market entry phase for a new product. Sales are typically low with slow growth.
- Growth Stage: In this stage, the product gains recognition, experiencing strong sales growth.
- Maturity Stage: At this point, the rate of sales growth begins to stabilize, remaining relatively constant over time.
- Decline or Saturation Stage: Sales fall considerably during this stage. The company must consider whether to relaunch the product, seek new applications and uses, or cease marketing it.