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Optimal timing and location in competitive markets

Author: Tibrewala, Vikas ; Ghosh, AvijitINSEAD Area: Marketing Series: Working Paper ; 90/85/MKT Publisher: Fontainebleau : INSEAD, 1990.Language: EnglishDescription: 27 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The choice of a good location strategy is one of the most crucial decisions facing a retailer. While a number of recent articles have addressed the issue of site selection, the related issue of optimal timing and preemption has been largely ignored. In this paper, an integrated location-allocation model is presented that allows a retailer to formulate an overall location strategy by addressing the questions of many stores to open, where to open them, and when to open them. In addition, the model explicitly incorporates demand growth scenarios and take into account the dynamics of competitive actions. As an illustration of its use, the model is applied to a simple yet realistic decision scenario
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The choice of a good location strategy is one of the most crucial decisions facing a retailer. While a number of recent articles have addressed the issue of site selection, the related issue of optimal timing and preemption has been largely ignored. In this paper, an integrated location-allocation model is presented that allows a retailer to formulate an overall location strategy by addressing the questions of many stores to open, where to open them, and when to open them. In addition, the model explicitly incorporates demand growth scenarios and take into account the dynamics of competitive actions. As an illustration of its use, the model is applied to a simple yet realistic decision scenario

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