Richer Sounds have stores across the UK but have 10 stores in London plus their sales, Julian Richer’s office suggesting that London is the main market for their business.
No business stands still whether big or small business, they either move for increase or decrease. They are a lot of things that can cause a business to relocate the reasons vary it may be because of profit or loss. The factors that can cause Richer Sounds to relocate later in the future would be:-
- Expand of the business
- Increase
- More attractive area to the customers. Because they are some areas that customers get bored of so they need some thing new
- It may be cheaper location where they are more customers
- Good transport service and excellent parking space. Excellent parking space is needed because of the products being sold. Richer Sounds deals with a range HI-FI, home cinema, video and DVD products. Customers need space to be able to carry the product that they bought to the car or to any other transportation links.
- No competition area
- Less demand for the products and the business is forced to downscale in size but it doesn’t necessary mean bankrupt but instead it means that they just have to cut down in some areas that are not doing well.
- More skills in Asia such as China/ Japan which have a larger industrial sector and a manufacture
- Area might be poor
- Customer boredom
- Style of the customer might change e.g. Woolworth is no longer on the high streets but they are now online.
In contrast, UKWebCo.com is located in India and London but has customers in different part of the world which include Spain and Netherlands. UKWebCo.com has been located in London for 6 years. The London is the capital, the centre of the UK business world. London office is used for the main office whilst the Indian office is used for the IT system which includes Designing and building websites. By doing this part of the business it saves cost and also there are shortages of skills in the UK. These gives the location of a business is a good indicator of the area and the success of the business.
UKWebCo.com has a high expectation of Hyderabad in India because it got a university that specialises in IT and most of all the students are IT specialist. This makes UKWebCo.com more particular about Hyderabad.
UKWebCo.com has being in existence for about 6 years and it is fairly new. The reason for their original location is that they started off in the spare room at home they moved out of the original location because the need a more professional location where the customers could come too. Being in a house doing a business is not professional and the business become less popular and less conductive for the customers.
And they expanded and the business grew.
-Relocating business is the most stressful thing and some times exciting because it’s a private limited company-
Even as a small business they are factor that can still cause the business to relocate. But as a small business, they have an opportunity to still grow and they have plans for expectations. Most factors that can cause UKWebCo.com to relocate in the later future would be:-
- Increase
- Growth of the business
- Cheaper work force in India
- More skills in Asia such as
- China/ Japan which have a larger industrial sector and a manufacture
- India which has more skills in ICT and are technical and advance.
- They are near customers
- They have less demand for the products and the business is forced to downscale and size.
- Reduction of cost can affect their business
- Exchange rate can affect them because of the pound downfall the same as Euro
- Raw materials such as Electricity
- Also an advantage on low interest rates
