Why Do Competitors Open Their Stores Next to One Another?

B2 – Upper Intermediate

Do you ever wonder why you see competing shops in one crowded spot? Is it a matter of keep-your-enemies-closer strategy or an efficient spatial competition? Find out below.

Discussion Questions:

  1. Please explain Hotelling’s Law.
  2. If you were to put up your own business, what would it be? How would you apply Hotelling’s Law to find a location for your business?
  3. Give some examples of product differentiation.
  4. What are some booming businesses in Spain nowadays?
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