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How a multinational such as INDITEX gets such a big market share?

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This project tests the theory behind the model of the urban hierarchy. The urban hierarchy is made up of different types of settlements. Where they stand on the hierarchy depends on a number of factors, the main ones being: * the size of the settlement in terms of its population * the range and number of services a settlement has * the sphere of influence or the size of the area served by the settlement. The best way to show the urban hierarchy is by using a pyramid, as shown in this diagram. The most obvious way of deciding where a settlement ranks on the urban hierarchy is by using the population of that settlement. The larger the population, the higher the settlement is placed on the hierarchy. In the UK, the largest city in terms of population is London, which most people would agree is the most important settlement in the country and so deserves to be placed on the top of the urban hierarchy for the UK. ...read more.


For instance, it has the major international airports, it is the seat of our national government, it has the widest range of shops, including very specialist ones, and it has the most renowned professional services. This is because its population is large enough to support all of the services. A small village may on the other hand only have the population to support a pub, post office, village store and perhaps a small garage. Villages and other rural settlements have found over the last 20 years that it has been increasingly hard for services to remain viable in these settlements. Small post offices and banks have frequently been closed down, as there are simply not enough people using them to make them viable. The number of services (functions) that a town provides normally relates to the number of people living there. There are however, two noted anomalies. These are examples of settlements that do not conform to the general pattern, and they are explained below: The sphere of influence of a settlement describes the area that is served by a settlement, for a particular function. ...read more.


An example might be a furniture shop. This sells comparison goods, in other words products that you might shop around for before going ahead and buying something. There are two major ideas to consider when looking at the sphere of influence of a shop of service. These are called the range and threshold population of a good. The range of a good or service describes the maximum distance that someone would be willing to travel to obtain that good or service. A newspaper shop has a small range because people will not travel far to use them. A cinema has a much wider range as people are prepared to travel much further to go to it. The threshold population of a good or service is the minimum number of people needed to allow that shop or service to be successful. The more specialist a shop is the larger its threshold population is. A newsagent will have a small threshold, where as a supermarket like Tesco's needs a much larger population before it can consider opening a store. ...read more.

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