1. Location Analytics and Competitive Advantage of Place
SIGGIS Pre-ICIS Workshop, Seoul, Korea
December 10, 2017
Namchul Shin, Pace University
James Pick, University of Redlands

2. Competitive Advantage
Michael Porter (Competitive Advantage, 1985)
Industry Forces: buyers, suppliers, threat of new entrants, threat of substitute products or services, and rivalry among existing competitors
Value chain activities: primary activities (inbound logistics, operation, outbound logistics, marketing/sales, and service) and support activities (Firm infrastructure, human resource, technology, and procurement)
Cost leadership
Differentiation
Niche
Competitive advantage of IT
Competitive advantage of place (location analytics)
Creating value and mitigating harm

3. Location Analytics
Location Analytics (e.g., Business Analyst) provides solutions for multiple industry sectors:
Retail
Real estate
Insurance
Logistics (warehousing and transportation)
Government
Military
Health care
Different industries have different types of locations and different customers to analyze.

4. Industries, Locations, and Customers
Industry
Business example
Location
Customer or client
Finance
Financial services firm
Office locations
Investor
Real estate
Broker
Buildings for sale or lease
Office park developer
Retail
Grocery chain
Grocery stores
Shoppers
Insurance
Insurer
Properties
Homeowner
Logistics/supply chain
Shipping line
Ports, terminals, warehouses
Third-party logistics carrier

5. Location Analytics
Location Analytics help you gain knowledge about the lifestyles and buying behavior of consumers and potential areas or locations for you to build, relocate, or expand your business (with less competition and attracting customers).

6. Cases and Maps Cases Maps Story Maps The Shopping Center Group (TSCG)
Walgreens BP
Maps
NYC Crime Trends
Big Apple Bicycle Map
Story Maps
Two Koreas

7. Location Analytics: Creating Value and Mitigating Harm
Market Opportunities in the Northwest Region of New York for a Canadian Bank
Site Selection for a New Green Home Improvement Center in the Minneapolis area
Understanding Risks for an Insurance Company in Florida

8. Market Opportunities: New Branch Location

9. Market Opportunities: Search for Competition

10. Site Selection

11. Two Retail Store Sites (Carter and Steiers) and Competitors (Home Depot, Lowe’s Home, and Menards)

12. Major Shopping Centers (Gross Leasable Area)

13. Supply and Demand/Number of Businesses (Carter versus Steiers)

14. Market Potential Index (Carter versus Steiers)

15. Psychographics (Carter versus Steiers)

16. Findings for Carter and Steiers Retail Store Sites
Overall, the Carter market area offers a more favorable competitive environment than the Steiers market area
While supply for home improvement products is higher than demand, the difference is smaller than that of the Steiers area.
Less number of competitors
More active retail market with several large shopping centers
Similar purchasing behavior (patterns) in the home (improvement) category, but the psychographic factors favor the Carter market area; adults in the Carter market area report higher levels of consideration of environmental factors in purchasing decisions.

17. Understanding Risks Using Location-based Information
Insurance company
Location of the company’s policyholders and the total insured value (TIV) of their properties
Circles for TIV Heat Map for TIV

18. All Historic Hurricane Tracks in Florida

19. Three Most Likely Hurricane Tracks

20. Areas in Florida Predicted to Have Inundation from Storm Surge and Properties in the Highest Risk Zone