Comments on: Why Do Competitors Locate Near One Another?

By: Matt Daniels

Matt Daniels — Mon, 02 Mar 2009 21:50:55 +0000

Intuitively, it would make sense. But lets look at the beach example again. A starbucks is in the middle of the beach and a mom & pop decides to open shop on the beach as well. Would it locate on the far end of the beach, as far as possible from the starbucks, or would it open up right next to it?

By: Sheehan Alam

Sheehan Alam — Mon, 02 Mar 2009 20:41:23 +0000

i was just discussing this concept with a friend of mine a few weeks ago. i totally agree, however, if you could confirm – this only applies to businesses of similar market cap correct? for example, a mom & pop coffee shop could not compete next to a Starbucks, due to Starbucks mass production via economies of scale. now if coffee bean & tea leaf opened up next to starbucks, that is a totally different story.

By: Matt Daniels

Matt Daniels — Mon, 02 Mar 2009 16:50:55 +0000

Intuitively, it would make sense. But lets look at the beach example again. A starbucks is in the middle of the beach and a coffee bean & tea leaf decides to open shop on the beach as well. Would it locate on the far end of the beach, as far as possible from the starbucks, or would it open up right next to it?

By: syalam

syalam — Mon, 02 Mar 2009 15:41:23 +0000