Second, to determine new locations for commercial establishments by jointly analyzing geodemand and geocompetition. Given the combination of the statistical and spatial components in this identification process, these concepts are referred to as geodemand and geocompetition. Therefore, the objectives of this research are as follows.įirst, to use statistical information together with spatial components to identify demand and competition. Thus, there are possibilities to develop methodologies for determining new commercial locations by integrating such spatial and geographic information with clear, practical applications. Nevertheless, Wood and Reynolds ( 2012) point out that although the literature places great importance on spatial analysis and geographic information in decision-making in the location strategy of companies, this is not the case in practice. Geography is being handed an increasing importance for its key role in the current understanding of the success of a business (Alcaide et al. This is the reason why developing methodologies and processes that identify new business locations is essential. The search for an optimal location strategy has the potential to become the differentiating factor. Any element of competition that can triumph in this environment has a very high value (Clarke 1998). The current situation is characterized by ever-increasing competition, resulting in lower margins, and the exploitation of all possible market segments. If the process of choosing the site of a retail establishment has always been complicated, this is now truer than ever, since environmental circumstances have recently worsened. Consequently, the analysis of location is vital for retail and commercial enterprises (Hernandez and Bennison 2000). Also, a store that is unsuccessful due to a poor choice of location can have a significant negative impact on the image of the company. In retail companies, the opening of a new store or outlet carries an inherent risk because of the high monetary costs associated. It has always been said that the key variables of a successful retail distribution company are location, location, location, so from this statement it is easy to deduce the importance of a proper location strategy for retailers (Ghosh and McLafferty 1982). This detection process can be used in any commercial distribution company, so it can be generalized and considered a global solution for retailers. A practical application is performed in Murcia (Spain) with 100 supermarkets and data at a city block level, which is the highest possible level of detail. The advantage of this methodology is the capacity of GIS to handle large amounts of information, both spatial and non-spatial. Third, the Kernel density allows users to visualize results, thus facilitating decision-making by managers, regardless of their professional background. Second, a third map is obtained by matching this information with the demand not dealt with properly by the current commercial offer. First, geodemand and geocompetition are located on two separate digital maps using spatial and non-spatial databases. This new approach is called geomarketing. The methodology consists of a range of analyzes with Geographical Information Systems (GISs) from a marketing point of view. For this reason, the process outlined in this paper has been specifically developed to detect new business locations. Although, in theory, an increasing level of importance is placed on geography because of its key role in understanding the success of a business, this is not the case in practice. In these conditions, the search for an appropriate location strategy has the potential to become a differentiating and competitive factor. The retail distribution sector is facing a difficult time as the current landscape is characterized by ever-increasing competition.
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