ISOKIA Consulting


Location analysis

For enterprises planning locational change or expansion or a a branch office in inland or foreign countries question arises which factors have to be taken into account so that plans achieve success in short and in long run.

Some locational factors have proved to be success critical. Each can already become the knock out criterion. Finding out a suitable location therefore requires a systematic examination, whether and on which scale success critical criteria match or not.

Partly it depends on your business goals which factors are success critical. Low staff and material costs at the new location particularly are of importance if enterprise follows cost reduction strategy. Other factors are of importance at every strategy and location, for example appropriate political framework and the existence of an entrepreneurial culture in the target region.

So it is necessary to plumb at first, which strategy your enterprise pursues in the field of planned location change, branch office or expansion. The four most important strategies of internationalisation are today:

Developing of foreign markets by proximity to customers or by product differentiation (market opening up),

cost reduction by settlement in a low wage country (cost leadership),

production shift in the retinue of key customers (following customer),

opening up of innovative technologies and knowledge inventory by presence in the corresponding agglomeration regions (technology opening up).

At the clarification of strategic options for your enterprise we support you with our expertise. Moreover, we provide advise related to optimization strategies at present enterprise locations. Business goals can often be achieved by optimizations or by other measures.

ISOKIA Location Analysis

Three types of factors can be success critical for enterprises:

Market factors
Being included: Sales potential, trade barriers, market structure and competition.

Production factors
Being included: Costs, availability and quality of production factors, taxes and incentive systems, methods and burdens, macroeconomic indicators, political and legal locational factors, infrastructure, social structure, culture, geological, geophysical and other geodynamical factors.

Performance factors
Being included: Productivity, process quality, throughput time, capacity for innovation, flexibility in product customization and product quality.

Some of these factors can be influenced directly by enterprise strategies and their implementation. We provide advise and support you with our analytical competence. Other factors which must be taken into account in selecting locations go beyond what can be influenced by your enterprise directly. These are particularly the framework conditions given at the location.

Included are political, economic and social framework conditions, enterprise related culture in the target region, regional labour market and qualification structure and available infrastructure, possible natural risks, critical infrastructure, cultural backgrounds of population as well as ethical and moral framework conditions.

Based on statistical data, qualitative enquiries, and where appropriate interviews on the spot we give you a detailed insight into the respective framework conditions and forecast the development to be expected.

As soon as you have data, determined criterion supported and well prepared, perhaps also for alternative locations, you have available an acceptable and comprehensible basis for a well-founded location decision and you are enabled to adjust your business activity to the given conditions.

Starting with the development of decision relevant criteria and providing the corresponding data basis we support you - depending on need - with our services.

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ISOKIA Consulting






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