Service Area Network Analysis for Location Planning of Microbusiness and Local Franchise in Urban Area: A Case Study in Malang City, East Java Provence, Indonesia

Satti Wagistina, Dyah Rina Syafitri, Julaika Sri Lestari, Khoirunnisa Hafidha Amanatinismi, Dicky Setiawan and Santica Ramadhani
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Satti Wagistina: Geografi Department, Social Science Faculty, Universitas Negeri Malang, Malang 65145, Indonesia
Dyah Rina Syafitri: Geografi Department, Social Science Faculty, Universitas Negeri Malang, Malang 65145, Indonesia
Julaika Sri Lestari: Geografi Department, Social Science Faculty, Universitas Negeri Malang, Malang 65145, Indonesia
Khoirunnisa Hafidha Amanatinismi: Geografi Department, Social Science Faculty, Universitas Negeri Malang, Malang 65145, Indonesia
Dicky Setiawan: Geografi Department, Social Science Faculty, Universitas Negeri Malang, Malang 65145, Indonesia
Santica Ramadhani: Geografi Department, Social Science Faculty, Universitas Negeri Malang, Malang 65145, Indonesia

Economies, 2022, vol. 10, issue 5, 1-23

Abstract: Malang city is supported by the informal sector, represented by 50.41% informal employees; 17.80% are street food vendors located by collector, neighborhood, local, and alongside footpaths. Those highly potential business opportunities are equipped by high-rate competitors that would be a failure factor. One of the most contributive factors of 50–60% of business failures is rough location planning without an effective solution. The purpose of this research is to analyze strategic selling locations for microbusiness and local franchises in Malang City. A quantitative approach was used to analyze numeric calculation while a geography information system (GIS) was used as the analysis method. Additionally, service area network analysis (SANA) as a GIS tool was used for counting the threshold of spatial factor. Both SANA and GIS integrate with mobile applications, which are called by LOLAKU (location = LO, or location to accelerate salability = LAKU). After analyzing the strategic location factor, these application are tested toward microbusinesses and local franchises around the study area. Respondents are involved in testing sessions after interview for microbusiness and local franchise criteria. The research showed that strategic locations for microbussiness and franchise local listed up to three rental points, there are: point 6 (112°36′44,571″ E–7°57′25,556″ S), point 9 (112°36′37,116″ E–7°57′28,496″ S), and point 21 (112°36′49,114″ E–7°57′48,281″ S). After comparing with respondents’ business criteria, point 6 is the most suitable one, which is located on alongside local roads, and traffic counted 37.8 unit/min on weekdays and 32.0 unit/min on weekends. LOLAKU received good responses from 36 respondents who took part in the criteria business determining and trial test sessions. We hope this application development will support and provide factual benefits for microbusinesses and local franchise actors in the future.

Keywords: service area network analysis; local franchise; strategic location; LOLAKU (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2022
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