Location & site selection is one of the most important strategic decisions for service based firms.

Because service in nature is perishable. That’s why service industry requires the presence of guests
or customers simultaneously while the service is being produced. Because services are being
produced and consumed in real time. So ultimately location has the power to make or break the
business of service based industry.
Selection of location is a macro level decision which involves countries, different areas or regions
within a country or community. And site selection is a macro level decision.
Our company is about providing entertainment services that is an amusement park. Amusement
park will provide multi services and facilities. So it requires huge area within a big city or close to a
big city. While selecting location some factors need to be considered. The factors are:
 Market size(number of customers)
 Disposable income of the target market
 Communication system
 Transportation
 Availability of labor
 Geographical factors
 Electricity
 Distance
 Time
 Cost of land & construction
Now there are two quantitative approaches for location selection. Factor weighting method is one of
them which is complex system including six steps. It measures the overall possibility of success
scores of a location. Another one is center of gravity model that places the property location on two
coordinates. We used factor weighting method to determine the best position of the amusement park
from three locations. Possible locations are Gazipur, Narayanganj, and Savar. Based on several
factors and their weighted scores we will select the best location. In the following table we assigned
some factors with a weight to the each factor. Then we developed a scale of 1 to 5, managing the
scores of each location of each factor we multiplied the scores with weight factors. Adding up the
scores of each factor for every location we found that Gazipur has the maximum weighted score.
Then we decided to locate our amusement park in Gazipur.

Location Scores Weighted Scores

Importance Gazipu Narayanganj Savar Gazipur Narayanganj Savar
Factor Weight r
Market size 9 5 4 5 45 36 45
Distance(From Dhaka) 8 3 5 3 24 40 24
Transportation to
amusement park 5 3 3 3 15 15 15

Land costs 10 3 2 2 30 20 20
Natural beauty 6 5 2 3 30 12 18
Jam 3 1 3 2 3 9 6
Total
147 132 128
s
Factor scoring scale: 5= excellent, 4= good, 3= fair, 2= poor, 1= unacceptable.