Question

What are the differences between the location for an industrial sector and service sector, and mention an example firm for each sector and why they chose their location?

Answer 1

The business which are associated in providing the services to the product they are often called as service sector. They are involved in providing services to the other business for e.g.. services with respect to technology, or services with respect to maintenance or counseling.Example of service industries ae housekeeping , tours and travels or professional jobs.

Industry sector refers to the industries in large giving shelter to goods and products produced by the business. These are the tangible goods produced in the economy . The first instance looks like engaging in heavy machinery however all the business working in production of goods and products are called industry sector.

Difference between Location of industry and service

1. For Industry sector it involves manufacturing of raw material into finished goods and product making. Therefore the location should be a place where there is easy flow of raw material and easy assembling of production. Whereas in Service Sector the aim is to provide either the professional services or after services to the product associated to the product. Therefore there is no need of vast infrastructure to build for service sector.
2. In industry sector there is no official face to face communication between the client and the project therefore business from anywhere in the world can be done and on the project completion it can be assembled to client's place Whereas in Service sector there is all time connection with th client to serve them better hence client's residing become the important aspect in location.
3. The set up of industry sector is on the place where there is easy flow of workforce and labor whereas the setup of service sector is on the place where there is easy flow of technology.
4. The goods manufactured can be made anywhere and than can be imported or exported in industry sector Whereas in service sector only skilled and complex services are outsourced.
5. The climate also has impact in making seasonal products or rendering services in relation to those products.

Hence there are different different factors on which location of both the sectors are depended . This include

• Size and population
• The technological area
• The Climate to produce the goods or render the services.
• The government economy to import and export or outsource the goods and services.

Examples

Industry Sector : SAMSUNG ELECTRONICS location : South Korea

Now the Samsung is a huge company providing the employment to all the levels i.e.. whether skilled or unskilled therefore location depends upon the area where they can get ease in workforce. Moreover there is always technological updation hence the headquarter are located in highly technological dominance area.

We can sum up that the reason of choosing the location depends upon thee factor on which one can ease with their business.

Service Sector : Artificial intelligence providers ( AEye) Location : California

The location is California because that is termed as electronic hub and rich in technological resources. The main aim of these service providers is to set up a project in the client's place to serve them better. Therefore the location depends upon the requirement from the end of client.

CONCLUSION

Hence the location is primarily the place which will affect the business income and cash flows. In order to maintain the goods cash flows their is the aim of business to reach out to larger public either by producing goods or by rendering high quality service.

Therefore the location plays an important part in earning revenue to the products and services.