Explain the advantages and disadvantages to a business of choosing a location in the city centre.

The advantages to a business of choosing a location in the city centre are:

• The business may be closer to customers. This can increase possible demand and revenue
• The business may wish to build a good image or prestige. Setting up in a city helps to support this image and to attract its target customers
• In a city there is good infrastructure, e.g. water, electricity, internet and transport links. Customers can get to the business without any difficulty

The disadvantages to a business of choosing a location in the city centre are:

• The cost of land or rent is likely to be more expensive in the city centre
• There is likely to be lots of competition. Thus the business might not gain as many customers