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Decision To Expand Large Animal Term Paper

SC = X3* 20% + X3* 30% where,

SC - supply capacity

X3 - the number of other veterinary practices

DG = (X2/X1)*X5 + (X2/X1)*X4 - SC where,

DG - demand gap

X2 - population income levels

X1 - Size of Randolph County

X2 / X1 = Average income per individual in Randolph County

X5 - number of the population that owns food animal

X4 - number of population that owns pets

After determining the demand gap and if this one turns out to be positive, the entrant has to determine the location strategy. Generally, the practice should be close to the client, but if the clients are randomly spread across the territory, there are some location models that could help the company serve an optimal level of clients. Thus, if the competitors are equally...

If the competitors are concentrated near a place with higher population density, it makes sense for an entrant to approach client on the other side of the territory as they don't have access to the competitors' services. However, the first thing an entrant has to do to determine its future location is to run a market research and see which are the areas with higher demand gaps within the Randolph County and focus on those.
Reference List

BLS - Bureau of Labour Statistics, Accessed June 2007, http://www.bls.gov/oes/current/naics3_541000.htm

WVBEP - West Virginia Bureau of Employment Programs, Accessed June 2006, http://www.wvbep.org/bep/lmi/EW2006/q4/ew06x083.htm

Sources used in this document:
Reference List

BLS - Bureau of Labour Statistics, Accessed June 2007, http://www.bls.gov/oes/current/naics3_541000.htm

WVBEP - West Virginia Bureau of Employment Programs, Accessed June 2006, http://www.wvbep.org/bep/lmi/EW2006/q4/ew06x083.htm
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