Final answer:
When evaluating the Location of Competitors, factors like costs of labor, proximity to suppliers and customers, infrastructure quality, local governance and taxation, and environmental regulation costs are essential. Physical aspects of products and the site location's competitive advantages, along with thorough site location analysis, contribute to a strategic decision-making process.
Step-by-step explanation:
When considering the Location of Competitors, several elements need to be accounted for. Companies need to look at various factors which affect not only the demand for their products or services but also the operational costs and potential for growth. Among these factors are the costs of labor and financial capital, proximity to reliable suppliers of necessary inputs, the need to be close to customers, and the availability of quality infrastructure in terms of transportation, communications, and electrical power networks.
Furthermore, the level of taxes, the competence and honesty of local government, and environmental regulation costs should also be evaluated. However, typically environmental costs are relatively minor compared to other expenses. The physical aspects of a product, such as 'unbreakable bottle' or 'extra spicy', can also impact the decision as they might be associated with the firm's location. A firm's location can enhance its competitiveness, such as a gas station at a busy intersection or a supplier adjacent to a manufacturer.
Geographical considerations, like site location factors and situation factors, play crucial roles as well. Site factors include local qualities aiding the growth of a city, like availability of resources or defensibility, while situation factors are external elements like distance to other cities. Lastly, performing site location analysis through tools like GIS is vital for businesses and governments to make informed decisions about where to establish operations.