Location-based technology operates using the Global Positioning System (GPS), Wi-Fi, cellular data, and Bluetooth to determine the geographic position of a device. By leveraging these technologies, applications can provide services tailored to a user's specific location, like navigation, local search, and geofencing. The technology typically collects real-time data from satellites or nearby network signals to pinpoint a device's whereabouts. This information can then be used for targeted advertising, improving user experience, and enhancing service delivery, making it a critical tool in various industries such as retail and transportation.