ABSTRACT
Businesses compete in many ways; product differentiation, price and non-price competition for example, but market share can vary dramatically from locality to locality. Many businesses, particularly retailers, must establish branch networks at local, regional and national scales in order to penetrate markets and maximise revenue. Business market research in support of commercial property decisions is an established discipline but it is one that has benefited significantly in recent years from GIS tools and techniques. ‘Many important business decisions are now made utilising business mapping as one of the key tools’ (Wicks, 1995). Consultants GeoBusiness Solutions argue that GIS is part of the armoury through which businesses compete to gain competitive advantage. For example, GIS is used for site screening and selection, catchment area definition (using customer or expenditure estimates and local demographics), store performance evaluation, marketing and customer profiling. In specific market sectors, geographical analysis is used to support decision-making in the following ways:
Retail: sales analysis and site development, new store sales forecasts, impact analysis, store performance analysis, dealer network planning and after sales forecasting, loyalty card and customer database analysis.
Leisure: demand elasticity estimation, local marketing, site development and support for licensing.
Finance: local market demand strategy, optimal networks (branches and automated teller machines), service planning and merger impact analysis.
Property: feasibility studies, planning research, catchment area definition and analysis.
