Research Paper on An analysis of service area networks was used to plan the locations of local franchises and small businesses in urban areas. The case study was conducted in Malang City, East Java Province, Indonesia.

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Title: An analysis of service area networks was used to plan the locations of local franchises and small businesses in urban areas. The case study was conducted in Malang City, East Java Province, Indonesia.

Abstract: The informal sector, which employs 50.41% people, provides support for Malang City. Of these, 17.80% are street food vendors who can be found near footpaths, in neighborhoods, and near collectors. High-rate competitors who would be a failure factor are equipped with those highly potential business opportunities. Rough location planning in the absence of a workable solution is one of the most important contributing factors to 50–60% of business failures. The goal of this study is to examine local franchises and microbusinesses in Malang City’s strategic selling locations. In order to analyze numerical calculations, a geography information system (GIS) was used along with a quantitative approach. In addition, the threshold of the spatial factor was counted using the GIS tool called service area network analysis (SANA). Mobile applications are referred to as LOLAKU (location = LO or location to accelerate salability = LAKU) and both SANA and GIS integrate with them. These applications are tested on local franchises and small businesses in the study area after a strategic location analysis. Following the interview, respondents participate in testing sessions for local franchise and microbusiness requirements. According to the study, there are three rental points that are listed as strategic locations for small businesses and franchises in the local area: point 6 (11236044,57100 E-757025,55600 S), point 9 (11236037,11600 E-757028,49600 S), and point 21 (11236049,11400 E-757048,28100 S. When compared to the respondents’ business criteria, point 6 is the most suitable location because it is close to local roads and has traffic counts of 37.8 units per minute during the week and 32.0 units per minute during the weekend. 36 respondents who participated in the criteria business determining and trial test sessions provided positive feedback on LOLAKU. In the future, we hope that this application development will help and actually benefit local franchise operators and microbusinesses.

Keywords: service area network analysis; local franchise; strategic location; LOLAKU

Paper Quality: SCOPUS / Web of Science Level Research Paper

Subject: Economics

Writer Experience: 20+ Years

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