Quantitative reasons
- Availability, sustainability and cost of land.
- Availability, suitability and cost of labour.
- Different countries have differently skilled labour (e.g., Germany has lots of engineers), low socio-economic countries have cheaper labour.
- Proximity to the market.
- For heavy/large products it is inconvenient to have to transport them very far.
- Proximity and access to raw materials.
- If the raw materials are the heavy part, then it’s inconvenient to transport them very far.
- Government incentives and limitations.
- Government may subsidise businesses opening in rural areas.
- Feasibility of e-commerce.
Qualitative reasons
- Management preferences.
- Local knowledge.
- Infrastructure.
- Is the area supported by transportation, communication and support networks.
- Political stability.
- Government restrictions and regulations.
- Ethical issues.
- Pollution, noise etc. may affect location.
- Comparative shopping (clustering).
- As a grocery store, having a competitor right by your store can help/hinder sales.
