What is the reason for the grouping of similar businesses in close proximity in various locations?
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It’s actually drives more sales for all as people go there more certain they can find what they are looking for. But there are also reasons like desire for same customers/demographics, same shopping patterns, same location requirements, zoning laws.
It’s actually drives more sales for all as people go there more certain they can find what they are looking for. But there are also reasons like desire for same customers/demographics, same shopping patterns, same location requirements, zoning laws.
Game Theory. There’s a really good TED ED video on it using the example of two ice cream salesmen working on the same beach. It simplifies things a bit but essentially it comes down to having multiple competitors in the same area being the best way to maximise your market share, even if a more spread out arrangement is better for the customers.
Game Theory. There’s a really good TED ED video on it using the example of two ice cream salesmen working on the same beach. It simplifies things a bit but essentially it comes down to having multiple competitors in the same area being the best way to maximise your market share, even if a more spread out arrangement is better for the customers.
I know for a mall, there can be clauses in the lease stating there can be no other competitive business.
I know for a mall, there can be clauses in the lease stating there can be no other competitive business.
it’s also where the market is.
for years Burger King did no market research and saved money by building a Burger King across the street from every McDonalds.
it’s also where the market is.
for years Burger King did no market research and saved money by building a Burger King across the street from every McDonalds.
Primarily, it’s zoning. Municipal codes dictate where certain types of businesses and buildings can operate/be built. Retail business, for example, is limited to specified locations (for the most part). It’s also better to have clusters of those businesses so shoppers have fewer overall destinations.
Primarily, it’s zoning. Municipal codes dictate where certain types of businesses and buildings can operate/be built. Retail business, for example, is limited to specified locations (for the most part). It’s also better to have clusters of those businesses so shoppers have fewer overall destinations.
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