Final answer:
Location is a pivotal concern in business strategy, especially when the customer's physical presence is required. It influences competitive advantage, logistical operations, and costs. However, it interacts with multiple factors like labor, supply chain proximity, infrastructure quality, taxation, and regulatory environment.
Step-by-step explanation:
When determining if the presence of a customer at the process is essential, and thereby if location is a key factor, multiple elements must be considered. The physical aspects of a product play a significant role in marketing and consumer appeal, with features such as 'unbreakable bottle' or 'nonstick surface' often highlighted. However, a firm's location is instrumental in dictating its competitive edge. For example, a gas station situated at a busy intersection will likely experience higher sales due to increased traffic flow.
Moreover, proximity to suppliers or manufacturers can be advantageous. A supplier that is located near an automobile factory gains logistical benefits and potential cost savings. It's not just about immediate customer access; the decision about where to locate a business considers broader aspects such as labor costs, access to reliable suppliers, proximity to customers, quality of infrastructure, taxes, local government efficiency, and regulatory environments, including environmental protection costs.
While environmental costs may account for 1 to 2% of a large industrial plant's expenses, they are often outweighed by other financial and logistical considerations, suggesting that when a customer must be physically present, location indeed becomes a pivotal concern, but it is one of many factors that come into play in the strategic placement of a business.