Retailers, and other industries, can use location allocation analysis to help find a new store location. ArcGIS

Smart Market Planning… for organizations this means making intelligent and informed decisions about where the next store location should be.  There are many factors affecting that decision but location is often considered the most important: location of a proposed store, location of potential and existing customers and location of competitors.

Retailers, among other industries, can use location-allocation analysis in Business Analyst to help find a new store location. As the name suggests, location-allocation is a twofold solution that simultaneously locates facilities (stores) and allocates demand (customers) to the facilities (stores).

In Business Analyst, you can solve three different problem types with location-allocation:

1) Maximize Attendance – Good for specialty stores such as coffee shops, medical offices, or electronic stores… assumes that the farther people have to travel to reach your location, the less likely they are to use it.

2) Maximize Market Share – Large discount stores benefit… given the presence of competitors, captures as much market share as possible with a given number of locations.

3) Target Market Share – For a given target market share, tries to solve using the fewest potential locations necessary. Large discount stores also benefit by determining the expansion required to reach a certain level of the market share or see what strategy is needed to maintain the current market share given the introduction of new competitors.

via What’s New in 10.1 – Smart Market Planning | ArcGIS Resources.

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