GEO 301 Lecture Notes - Lecture 2: Distance Decay, Demand Curve, Consumer Behaviour

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Week 2: spatial concepts and the value of the geographic perspective. Opening new stores usually owned by the company. Usually slow however, financing can speed it up. Contagious diffusion: intensive development in a particular region expands outward into neighbouring locations. Coverage throughout hierarchy within an area: hierarchical/ contagious combination. Contagious diffusion from a number of higher order centers. Generally requires organization to have reached a large size. Companies that usually use this strategy have a large capital. Mergers: two or more companies combine to create a new company, relative equality between firms. Acquisitions: purchase of over 50%of shares in one company by another company, purchased company disappears as subsidiary. Takeovers: also involve one firm purchasing controlling shares, however the purchased firm stays in existence. Difficult to break into markets in new countries with organic growth. Companies that use this strategy can acquire another company at any time.

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