Methods of Evaluating Location Alternatives
Four major methods are used for solving location problems: the factor-rating method, locational cost–volume analysis, the center-of-gravity method, and the transportation model. This section describes these approaches.
Table 8.3 Clustering of Companies
| Industry | Locations | Reason For Clustering |
|---|---|---|
| Wine making | Napa Valley (U.S.), Bordeaux region (France) | Natural resources of land and climate |
| Software firms | Silicon Valley, Boston, Bangalore, Israel | Talent resources of bright graduates in scientific/technical areas, venture capitalists nearby |
| Clean energy | Colorado | Critical mass of talent and information, with 1,000 companies |
| Theme parks (e.g., Disney World, Universal Studios, and Sea World) | Orlando, ... |
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