What is it about?
The purpose of this research is the optimization of a commercial network showing the utility of geography in marketing and to verify if the optimal location of an individual dealership is compatible with the best location for the whole network. Location-allocation models are applied, using p-median algorithms and maximization of spatial competition.
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Why is it important?
The models show that the pursuit of individual objectives over the collective provides poorer results for the dealership network as a whole when compared to coordinated competition. In addition, the solutions provided by the models considering geographic and marketing criteria permit a reduction in the length of journeys made by buyers.
Perspectives
This work has theoretical and practical implications that can assist in the management and coordination of commercial networks.
Vicente Rodríguez
Universidad Internacional de La Rioja
Read the Original
This page is a summary of: Application of geographical information systems for the optimal location of a commercial network, European Journal of Management and Business Economics, July 2017, Emerald,
DOI: 10.1108/ejmbe-07-2017-013.
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