Finances, competitors and exclusivity
Finances
The amount of money a business has access to will have an impact on the The place where a business chooses to site its operations. of that business.
For example, it is generally more expensive to rent or buy a location for a restaurant in the middle of a busy high street than it would be to rent or buy a location in a quiet suburb. Only some businesses would have enough finances to afford a high street location.
Competitors
When there are many competitors in and around the same location offering the same products it can make it more difficult to attract customers and to make a profit.
Sometimes, however, it is good to locate near competitors. For example, food courts have rival businesses competing for customers but these businesses also benefit from attracting large numbers of customers who like the variety of the different foods on sale.
Exclusivity
If a business can locate somewhere with few or even no competitors, then this gives them Having few or no competitors. and they can charge higher prices than normal. Airports, motorway services and train stations are all good examples of this. The price of fuel and food at a motorway service station is often higher than in towns and suburbs.