Businesses often face significant challenges in determining which territories or areas to prioritize for expansion. This process can be time-consuming as it requires an in-depth analysis of various factors, such as market potential, the number of competitors, and the demographic characteristics of a location. In the business world, however, quick decision-making is crucial due to limited time and resources.
In this article, we will explore how LOKASI Intelligence helps businesses identify priority areas for expansion more efficiently and accurately.
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Why Speed Matters in Business Expansion?
In business, especially in the fast-paced retail industry, speed plays a huge role in success. The faster a business opens a branch in a prime location, the better its chances of attracting customers, building loyalty, and staying ahead of the competition.
Here’s why speed is a game-changer in business expansion:
Building Customer Loyalty
As mentioned earlier, businesses that enter high-demand areas first have a major advantage over latecomers. When people need a product or service and there’s only one place that offers it, they naturally choose that business.
This gives first movers a head start in building a loyal customer base. Customers get used to visiting and engaging with the brand before other options even exist, making it harder for competitors to take their spot.
Save Time and Cut Costs
Manually deciding which areas to prioritize for expansion can be a long and exhausting process. The team has to gather data from multiple sources, analyze each one, and consider various factors— all of which take up time, effort, and money. The longer this process drags on, the higher the risk of missing out on valuable business opportunities.
But with LOKASI Intelligence, businesses can skip the tedious manual work and get instant recommendations on the best areas for expansion. This not only speeds up decision-making but also reduces workload and operational costs.
How LOKASI Intelligence Accelerates Expansion
LOKASI Intelligence is a geospatial analytics platform that integrates location intelligence and location data. It comes with powerful features to help businesses find and optimize locations, one of which is Grid Analysis.
Here’s how Grid Analysis helps identify the best expansion areas:
Selecting the Expansion Area
The first step is deciding which areas to target for expansion. Businesses need a clear idea of where they want to grow and focus their development efforts.
For example, if a business plans to expand in Yogyakarta Province, specifically in Yogyakarta City, they simply need to enter “Yogyakarta Special Region” in the province field and “Yogyakarta City” in the city field on the platform.
Set Your Target Market Criteria
Once the expansion area is selected, the next step is to define your target market criteria. This ensures that the recommended locations align perfectly with your business needs and strategy.
For instance, If a business wants to attract office workers, it can select Points of Interest (POI) such as office buildings or business districts. But if the target market is families or residential communities, businesses can choose residential POIs.
Businesses can also refine their target market by specifying the socio-economic status of potential customers, whether lower-middle, upper-middle, lower, or upper-class.
Set the Area Radius
Next, determine the density and coverage of the area you want to analyze. Businesses can select the grid size or area radius based on their desired expansion scale.
For example, if a business wants a more detailed and precise analysis, it can select a smaller grid size, such as 500 meters.
On the other hand, if a business aims to analyze a broader area and assess market potential across multiple locations, it can opt for a larger grid, such as 5 km to 10 km.
Set Priority Scores for Each Factor
At this stage, businesses need to assign weight values to each factor in the analysis. This helps determine which aspects should be prioritized when selecting a location, whether based on the availability of Points of Interest (POIs) or the socio-economic status of the local population.
For this example, we’re giving equal weight to POIs and socio-economic status, meaning both factors are considered equally important in choosing the best expansion location.
Get Expansion Area Recommendations
Once everything is set, businesses can start the analysis with just one click. In no time, the system will process the data and provide recommended expansion areas based on their feasibility.
The results will be categorized into different levels, ranging from Acceptable 1 to Acceptable 4, and Unacceptable.
Acceptable 1: The best and most recommended area for expansion. This location closely matches the business’s target market based on the selected criteria. - Acceptable 2 to Acceptable 4: These areas have slightly lower recommendations than Acceptable 1 but still hold potential for expansion. The higher the number, the less aligned the area is with the business criteria.
- Unacceptable: Not recommended for expansion due to factors like low customer potential, lack of Points of Interest (POIs), or unsuitable socio-economic conditions.
Get Detailed Insights
In addition to area recommendations, businesses can access complete information about each grid, including the religion, socio-economic status, average land prices, education levels, zoning, and the common professions of residents in that area.
Final Thoughts
The Grid Analysis feature makes it easier for businesses to find the best expansion areas without the hassle of lengthy data collection and research. In just a short time, the platform analyzes key factors and provides priority recommendations for business growth.
After receiving these recommendations, businesses only need to conduct a field survey to confirm the findings. This streamlined approach significantly accelerates the expansion process while optimizing time and resources. A faster decision-making process not only simplifies expansion but also helps businesses stay agile in seizing market opportunities.
Want to learn more about how LOKASI Intelligence can support your business? Get in touch via:
Email: [email protected] | WhatsApp: 087779077750
