Why do competitors open their stores next to one another? - Jac de Haan 

Unfortunately it seems that teddy decided to go swim in the ocean with cinder blocks tied to his legs

One day, police found Teddy's corpse floating on the ocean.

Alternative title for this video: "Why everyone hates Teddy and you should too"

“In the real world businesses are free to compete with marketing strategies” *fish flavor ice cream*

Should have broke teddy's kneecaps for invading your territory.

I would accuse teddy of violating the non-agression principle and proceeding to nuke his cart 20 times

Me having learned a new concept in a simple manner: Wow! Neat! The comments: "DEATH TO TEDDY!!"

"You don't need to solve the problem if the problem doesn't exist" Somebody after erasing Teddy from existance

Easy “Keep your friends close but keep your enemies closer”

im gonna make Teddy an offer he can't refuse

If the cart is big enough, put Teddy inside it and take him to a drowing walk. If you don't, what guarantees he won't?

"Keep your friends close but keep your enemies closer" -Sun Tzu

Stupid guys, handing out icecream but forget to take the money. They will be ruined.

Imagine a McDonald's and a burger king just relocating every day.

Unfortunately, Teddy's business had to be closed because he ended up "missing"

Also the other reason why it's good especially for new competitors is because if the people are not satisfied with the competition or it is too busy they can always come and try your products, thus gaining popularity. If you were to be in a place where you have no competitors the only people you that will come are people who specifically come to buy from you and that doesn't happen to often in the beginning.

Conclusion: _Teddy is a problem_

Never before has "keep your friends close but your enemies closer" made so much sense

Moral of the story: never trust your cousin!

It's as they say: "Keep your friends close but keep your enemies even closer"

Did you know many people die from accidental drowning at beaches

sell your ice cream for 1 cent, with $999 shipping and handling

Moral of the story : Do not be cousins with Teddy

One day teddy had a heart attack, not like the one where you all of a sudden get chest pains and nearly die, but one where someone literally shot his heart. Police don’t know who did it because the criminal was smart and wore gloves and also made sure there were no witnesses.

Teddy is a cold son of a bitch!

I would've pushed tedys cart in the ocean

So, that's why Starbucks opens another store right across another *Starbucks*.

I don't know but there is something nostalgic with this animation style. Great job.

Keep your friends close but your enemies closer

oh so this was the famous TED we keeping hearing about in TED talks. xD

For some type of shops, it might also be due to communities managing where commerical shops or anything industrial is supposed to be placed. Around here, it also seems to be more about which area attracts which type of customer and where people have to walk past most frequently. They just end up next to each other because there are the most people in that area and they are allowed to do so.

It's also good to have options near each other just in case one place doesn't have something you are looking for or just for comparisons... a lot like how stores are organized. Each brand doesn't have it's own section, items are placed near similar items.

If my cousin broke our agreement like that I would have a nice little chat with him.

It's 2020 and people still coming up with new ideas to torture Teddy Edit: now it's 2021 and still people are being dark..

OMG I saw this talk many years ago and always mention it. Finally found it again!

"When competition arises, burn them to the ground" - Sun Tzu, the art of war

On the fourth day, Teddy never show up again because he was “persuaded” to stay the fk home!

3:46 Yes eddy! Bring on the fish flavour!

Why not offer cousin Ted to work together, merging ice cream companies while having 1:09 placement of two carts?

Even though I already knew part of this process, the video was really interesting and worth sharing, thanks !

Why do a competitors open their stores next to one another Plankton: To steal the Krabby patty secret formula

If i am on that situation and i am the customer. I always go to buy on the guy that have less customers, because it will not waste a lot of time waiting on the line rather than other guy that have more cutomers.

Tysm for such a informative insight. I was often stump by the same conundrum. Now, I see why is that.

I love this type of content. Keep it going!

That's why you should try to merge with Teddy's business and then raise the price to maximize profit together.

What i got from the video: 1. Businesses (i.e. stores) all want to be located at the optimal location in which customers require the least amount of distance to get to. 2. However, the best case scenario is for businesses to be located away from each other, at a distance that allows both to be accessed by customers with the least effort (distance i.e. steps) known as socially optimal solution (S.O.S). 3. Since no one business can ensure that the optimal location will not be occupied by another business, all the businesses 'crowd' (place themselves) in the optimal location, therefore competing stores are all located next to each other.

I am so lonely sippin 40s that I am watching this on new year's eve! Happy 2021 everyone! and thanks yt for the recommendation.

Ted shows up one more time and I'm shoving that fish-flavored ice cream where the sun doesn't shine

Solution: *[insert random way to kill Teddy]*

man .. looking at the comment section, you gotta love the internet 😂😂😂

"Keep your friends close, your enemies closer"

One morning Ted finds his icecream cart on flames, "sweet" irony

god dammit teddy

Believe it or not this Nash equilibrium, is part of the economic game theory that won John Nash a Nobel prize.

People set up similar shops near a bunch of stores who sell the same thing because whenever people wanna buy something, they tend to go to a location they last saw the store, and when they reach there, they see two similar stores. If the shop was set up else where, no one would know about it

Ted Ed remains on of the most informative videos ever

That's why you need the Mafia, to put Teddy in his place.

I just realized... Teddy (Ted) + Eddy (Ed) = Ted-ed!

A question that I've been asking myself a life long! Thanks

That was really interesting. Thank you very much!

I just realized that while Teddy would be taking up your territory, you should widen your company's horizons and employ more people into the Ice Cream selling industry. Get a second cart and place it on the other side of Teddy, make him be flanked by two carts. If he tries to employ the same strategy, buy a store on the shore. Advertise air conditioning, fresh and cool ice cream, get into the press and media to get more popularity. Spread your business to sandwiches and lunches, Teddy doesn't have the resources to compete outside of Ice Cream. Monopolize the selling industry for that particular beach, then SPREAD to other beaches. By then, you will have enough power and influence to frame Teddy of poor conduct. If he accuses you of monopolies, argue that Teddy is allowed to sell his ice cream, and that a monopoly would push him out of the market. THEN, you push Teddy out of the market by dropping your prices to such a low price that a small influence like Teddy would be unable to compete. Because beaches, unlike retails or manufacturing contain such a small portion of the industry, you will most likely be able to silence Teddy, then make a monopoly right under the government's eyes. After you have made big bucks, go public. Make a brand name for yourself. Enlarge your corporation if you haven't already. Sell for lower and lower prices, invest into technology, then leave selling Ice Cream for stock exchange and the housing market. Go bigger than before. You've already monopolized one small industry, what's stopping you from monopolizing more? Start building bases in other countries, amass enough wealth and popularity to overrule the law against monopolies. Then? Then team up with big companies such as Amazon and Google. Wipe out your competition. Influence the government, corrupt the officials, then make the government your puppet. Mess with the election, get yourself as president. Get your friends into the Senate, and change the Constitution. Remove the Constitution, and replace it with a government of your making, a standing monument to the weakness of democracy. Go back to your roots, set up your ice cream cart again. You're old, tired of fighting the government, the economy, the massive corporations. With your now ten year old ice cream cart, you head back to the beach where it all started. You smile at the place where Teddy's cart once stood, then go back. Back to selling your ice cream once more, content with the fact that you've changed everything, all thanks to Teddy and his cart.

I would've slapped teddy until he got knocked out

Them being closer to eachother has the benefit that customers can see both of the carts and chose which one they'd rather go to. The goal isn't the ability to go to ONE of the carts but ideally to ALL of them. Also the distribution isn't always going to be the same throughout all of the beach. You could for example have it so that 50 % of people live on the southern most tip of the island and the other 50 % lives on the opposite side. Setting the cart in one of those locations takes all of the customers in that location and there's still an open market on the other side, so it's more beneficial to move your bussiness there.

This was so helpful to my AP Human Geo class! Thank you so much!

*Slaps a stamp to improve ice cream sales* Stamp: "New Fish Flavor" Lol.. Go home.. u drunk

I've read that this also affect customer's thinking psyche, like when Pepsi and coke open store next to each other the customer wouldn't think that should I buy a cold drink or not instead they would think should I buy the Pepsi or coke.

Very well produced video.

Very well explained!!!

There is another reason as well: it increases the value of the whole area for certain products as well. Take clothing store. I am not gonna go to some place via car to check if it has the clothes i want. Now, if there are 5 shops right next to each other i am more likely to go find it there, if not in one shop then maybe in 3rd one. So ordinarily i wouldn't have travelled their due to cost of opportunity ( i could go do something more useful instead of going there and coming back empty handed). Same thing with Grocery Shops... I rather get everything i want, in one go from one place instead of traveling all over the neighborhood. In other countries where transport systems aren't that good, markets are very specialized, for example.. there is flower market, books market, clothing market, hardware market etc. Now this doesn't apply to super massive market. They always have everything often at cheap prices they are like the whole market themselves.

So in germany they opened a subway near a subway wich is next to a chinese resturant wich is next to a japanese resturant wich is next to a kfc wich is next to a burger King wich is near a McDonalds And yes this is real

That makes a lot of sense. I have often wondered about that!

I'm always curious about this. Good thing RU-vid recommended this to me

Who the fuck likes fish ice cream?

There is an unsocial optimum solution though........burn teddy's cart...🤣🤣🤣

I had a similar question! thank you!

That's why in some countries it's the city council who decides where it's permitted to open a shop

On the Friday morning of October 5 2012, investigators found what had looked like an old dish rag, but upon closer inspection, they found out that it was the remains of the missing Teddy H. Bear. There's no doubt that Teddy was stabbed then cut several times, investigators are now searching the area for any remaining pieces of Teddy. Friends and families have been informed, we shall let Teddy Rest in peace. This is D.A.Y News, Saturday at 7.

Boy, I love me some fish flavoured ice-cream!!

Smart work by ted-ed , by keeping the names Ted and Ed!

This was published a looong time , nice !!

There's a better explanation. If you need to buy a pair of shoes, where are you going to go? There is a corner shop that sells shoes, it's the only shoe shop in the area. But in a mall, there are 5 shoe shops right next to one another. You could go to the cornershop, but if you don't find what you're looking for, you need to drive a long way to get to another shop. On the other hand, at the mall, if you pick one shop, and don't get what you're looking for, you can just walk to the next shop. Which location would you choose to shop? In other words, having competing shops in your immediate area will actually _increase_ your number of customers, because people will know that they have a wider choice of your products in your area, and so more people will come.

Very interesting I always wondered why companies but their shops close together!

Thanks for the video!

As there’s say “Keep your friends close and your enemies closer”

I think the more important factors in the real world are: 1. Observer bias -- noticing a single isolated auto shop is more common but not noteworthy and 2. Often a "hub" of similar chains makes sense. Think of a fashion floor in a mall. It's often convenient to the consumer to find similar shops near to each other. Even something like a cafe: if it's a nice spot for a cafe, then when I go there it's great that if my first choice of cafe is packed there's another one a couple dozen metres away.

"Keep your allies close, but keep your enemies closer."

keep your friends close and enemies closer, makes sense you can observe your competition and counteract ASAP, when they making a move.

1:31 One thing - if someone were in the middle of the beach length-wise and on the edge width-wise, they would have to walk sqrt(2)/4 miles, which is more than 1/4.

To steal the Krabby Patty formula of course

there actually two more reasons for businesses to do this: 1. the geographical position is best. for instance: both icecream cars are on the same location (the beach) because the demand for their products is the highest in the area, plus no other competitors, like restaurants or supermarkets can move their businesses onto the beach. In that same way factories seek cheap land to build, near a workforce (the city) and near infrastructure (rivers and highways), since those locations are rare, all factories will go to the same area. 2. the reputation of the area. In my town, a whole bunch of restaurants and takeout places have settled in the same area near the trainstation and the shopping area, they got there because of the good conditions, however, the restaurants are right next to each other, causing the place to be known as a place to go for food. It allows customers to go there and then decide what to eat or ever get their food from multiple fastfood restaurants when they cant agree on what to eat, this gives the restaurants an advantage over other restaurants.

I believe another reason in some instances is that sometimes businesses can feed off each other. For example in a food court a customer ordering food at one shop, may end up at at your store too.

I really think it's much simpler than all this. Business owners set up shop where crowds are already gathering. People don't want to take risks and would rather set up their booth right next to a competitor because they can see he already has people gathering there vs trying something new + unproven.

You could always just dump boiling water in your Ted's ice cream cart when he isn't looking, then steal his girlfriend with the extra money you made

I asked this exact question when I was younger, just with car dealerships. My parents told me it was because if you didn’t like what they had at another store, similar stores wanted you to be able to come in, and hopefully find what you were looking for so you buy it

Thank you John Nash.

This took "keep your friends close a d your enemies closer" to another teddy level 😂

In our area there are 7 gas stations within a square kilometer of each other that's ridiculous

I remember learning about this in university, but they used stationary business examples like a hotel or gas station (something that couldn't just move so easily). With this they factor in footfall, i.e. if you wanted to set up a business but a competitor already existed, you would go set up near it as opposed to a completely new location. This is because people would naturally already be coming to that location as they knew they could get the product/service there. That way you can exploit the natural footfall your competitor spent so long developing. This would allows you to save on some overheads e.g. advertising trying to encourage customers to come to you. It's not black and white though, as you factor in brand loyalty etc too and determine if the hotelling model is the best idea.

Nice video. Thanks for sharing

Damn. Very impormative.