An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

Question

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When there are many competitors in a certain location, it creates a cluster of expertise, which attracts multiple suppliers and specialized personnel. This cluster effect provides advantages to all firms located in the vicinity, as it creates a network of support and collaboration that can lead to increased efficiency and reduced costs. Therefore, locating operations where there are many competitors can be a smart business decision.

An Advantage of Locating Operations Where There Are Many Competitors