Equal Competition Areas Mapping David Brettler MS UArizona 928-225-6167 dbrett45@gmail.com DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

Map based reports help you see the meaning of the information Map based reports help you see the meaning of the information. large commercial firms have GIS departments for good reason. It helps them sell. It helps them communicate. We bring these capabilities to firms like yours. Competition Analysis DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

Mapping equal competition areas between businesses The equal competition model creates polygons around each store. The simpler model uses linear distance to judge polygon size and shape. This method has obvious drawbacks: it does not take into account convenience to the location, and desirability of the store. We want to use more intuitive factors to estimate which store the consumer will prefer, both location and qualitative factors. Mapping equal competition areas between businesses

The blue squares are larger assisted living facilities, the smaller red dots are smaller facilities. We can also add demographics in block groups if we wish. This is an interesting picture to someone making a buying decision… Add a business layer… DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

The blue square represents a selected area of extent, and we will select the three large assisted living facilities inside the selected area. Create a selection… DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

Run the Huff model… DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

The Huff Competition Modeling Approach The chosen factors were average distance to the facility and capacity (number of residents). Other examples of features that might attract customers to an establishment include driving time, store size in square feet, and number of employees. As an example, houses closer to site 1 would prefer site 1. All locations in dark blue are assumed to prefer site 1, all locations in blue, site 3. Notice site 2: the polygon is smaller. Factors reducing the size of the area where consumers might prefer this location may include population in the immediate area and store sales. The Huff Competition Modeling Approach DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

Huff Competition Polygons DBPines 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved

Insights that matter. Call us. We are looking to find the areas among local residents in which consumers would prefer one store over another. The large unused areas away from the sites might be areas of untapped potential, then again, there may be good reasons why they are little used. They deserve more study. The boundaries of the polygons have a way of being areas of opportunity for new competitors. Insights that matter. Call us. DBPines, Inc. 928-225-6167 dbrett45@gmail.com ©2012 All Rights Reserved