26.8k views
4 votes
Colin brags to his friend Reid that his new bike shop has lots of parking and great visibility from Harper Avenue, and his nearest business neighbors are several hundred feet away. Colin has selected a ____________ site for his retail business.

User Blawzoo
by
7.4k points

1 Answer

4 votes

Final answer:

Colin has chosen a standalone site for his bike shop, which offers advantages such as less direct competition, high visibility, and ample parking, despite breaking with the Hotelling Model's tendency for businesses to cluster together.

Step-by-step explanation:

Colin has selected a standalone site for his retail business. This type of location is characterized by its separation from other businesses, which gives it high visibility and potentially less direct competition nearby. When reviewing the Hotelling Model, which states that businesses tend to agglomerate to capture the maximum number of customers, Colin's choice is atypical. This strategic location enables ease of access for customers who value convenience and may differentiate his bike shop from competitors if there's increased traffic due to external factors like a new manufacturing plant or changes in traffic routing for events.

User TilmannZ
by
7.2k points