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There is kind of a proverb related to business here, which loosely translated says something like: "In a street where there are several bakeries, it is wise to

There is kind of a proverb related to business here, which loosely translated says something like: "In a street where there are several bakeries, it is wise to open up another bakery." edit: I remembered that I have heard another version, with a different take: "In a street where there are several bakeries, next business that will open up will be a bakery" - I actually like that one more.

jashmenn 16y ago
I like this. Can you give more information on the origins? E.g. in what country/language is this proverb? What's the original language text?
- Keyframe 16y ago
  It's from Croatia (in Croatian). I have no ideas about its origin though.
- deleted 16y ago
  [deleted]
- kluikens 16y ago
  Somewhat relatedly to the proverb, but you might enjoy the "Emergence" episode from RadioLab. It's one of my favorite episodes and if you skip ahead to 18:56, you'll hear about 28th St Flower Market in New York which serves as a prime example. But, I highly suggest you listen to the whole episode (hour long). http://www.radiolab.org/2007/aug/14/ http://www.radiolab.org/2007/aug/14/
Andrew_Quentin 16y ago
It is wiser however to open a bakery in a street where there are none but a bakery is needed.
- Keyframe 16y ago
  Right, but this relates to a business venture where you can easily spot where there is a market. Thus, it is wiser to enter the market where you are sure there is one than breaking in new markets by yourself.
  - Andrew_Quentin 16y ago
    Well, it very much depends. If you are the new bakery guy in a street with three or four other bakers, you are entering a market of high competition. The other three bakers are competing perhaps at extreme levels already, whether through branding, building a loyal customer base by providing better customer service, better products, a nice environment, friendly bakers, and price certainly. Now, if you, the new kid on the block, enter this highly competitive market, you need to be extremely clever to be competing while not loosing money and, if so you manage to compete, they would probably copy you before they die themselves. If however you decide to take a little bit more time upfront and invest more effort to find a place where your service is needed and there is little competition, you'll be making healthy profits. That is why copying does not win in the long term and even the company in question has now had to start to make their own products.
    - Keyframe 16y ago
      Maybe, maybe not. It was not my assertion anyways, just a proverb I have heard. :)
- chrischen 16y ago
  If there are no bakeries there, you might also ask yourself why that is. If there's a secret hidden market somewhere well the hard part isn't starting a business there, it's finding it!
- pbhjpbhj 16y ago
  >a bakery in a street where there are none but a bakery is needed Then you find that people go to "bakery street" instead as there's a choice. The 3 stores share the whole market and you get none.
teamonkey 16y ago
Starbucks was/is notorious for a similar policy.
- chancho 16y ago
  On a street where there are several Startbucks, it's wise to open up another Starbucks?
  - prodigal_erik 16y ago
    http://www.youtube.com/watch?v=Cto45fWUdJI http://www.youtube.com/watch?v=Cto45fWUdJI Last time I was in downtown Seattle, Westlake Center (a small shopping mall) had three. Upstairs, downstairs, and a standalone building, all within a couple minutes' walk of each other. It's probably for the best they've seen the need to close some stores, but I almost wish they weren't, just for the absurdity of it. http://www.theonion.com/articles/new-starbucks-opens-in-rest-room-of-existing-starb,560/ http://www.theonion.com/articles/new-starbucks-opens-in-rest...
jwhitlark 16y ago
Kinda like the old punchline: "I don't have to outrun the bear, I just have to outrun you."
- johnrob 16y ago
  Great analogy, considering that it is often significantly easier to beat the competition ('you') than bring a new product to market ('the bear').
larrywright 16y ago
I seem to recall hearing once that this was how Subway determined whether a location was a good spot to put a restaurant. If there was a McDonald's, Burger King, etc nearby then they moved in. The logic was that if it was good enough for the big guys, it was good enough for them. I always thought it was a clever way to avoid paying for market research by piggybacking on someone else's.

jashmenn 16y ago

I like this. Can you give more information on the origins? E.g. in what country/language is this proverb? What's the original language text?

Keyframe 16y ago
It's from Croatia (in Croatian). I have no ideas about its origin though.
deleted 16y ago
[deleted]
kluikens 16y ago
Somewhat relatedly to the proverb, but you might enjoy the "Emergence" episode from RadioLab. It's one of my favorite episodes and if you skip ahead to 18:56, you'll hear about 28th St Flower Market in New York which serves as a prime example. But, I highly suggest you listen to the whole episode (hour long). http://www.radiolab.org/2007/aug/14/ http://www.radiolab.org/2007/aug/14/

Andrew_Quentin 16y ago

It is wiser however to open a bakery in a street where there are none but a bakery is needed.

Keyframe 16y ago
Right, but this relates to a business venture where you can easily spot where there is a market. Thus, it is wiser to enter the market where you are sure there is one than breaking in new markets by yourself.
- Andrew_Quentin 16y ago
  Well, it very much depends. If you are the new bakery guy in a street with three or four other bakers, you are entering a market of high competition. The other three bakers are competing perhaps at extreme levels already, whether through branding, building a loyal customer base by providing better customer service, better products, a nice environment, friendly bakers, and price certainly. Now, if you, the new kid on the block, enter this highly competitive market, you need to be extremely clever to be competing while not loosing money and, if so you manage to compete, they would probably copy you before they die themselves. If however you decide to take a little bit more time upfront and invest more effort to find a place where your service is needed and there is little competition, you'll be making healthy profits. That is why copying does not win in the long term and even the company in question has now had to start to make their own products.
  - Keyframe 16y ago
    Maybe, maybe not. It was not my assertion anyways, just a proverb I have heard. :)
chrischen 16y ago
If there are no bakeries there, you might also ask yourself why that is. If there's a secret hidden market somewhere well the hard part isn't starting a business there, it's finding it!
pbhjpbhj 16y ago
>a bakery in a street where there are none but a bakery is needed Then you find that people go to "bakery street" instead as there's a choice. The 3 stores share the whole market and you get none.

teamonkey 16y ago

Starbucks was/is notorious for a similar policy.

chancho 16y ago
On a street where there are several Startbucks, it's wise to open up another Starbucks?
- prodigal_erik 16y ago
  http://www.youtube.com/watch?v=Cto45fWUdJI http://www.youtube.com/watch?v=Cto45fWUdJI Last time I was in downtown Seattle, Westlake Center (a small shopping mall) had three. Upstairs, downstairs, and a standalone building, all within a couple minutes' walk of each other. It's probably for the best they've seen the need to close some stores, but I almost wish they weren't, just for the absurdity of it. http://www.theonion.com/articles/new-starbucks-opens-in-rest-room-of-existing-starb,560/ http://www.theonion.com/articles/new-starbucks-opens-in-rest...

jwhitlark 16y ago

Kinda like the old punchline: "I don't have to outrun the bear, I just have to outrun you."

johnrob 16y ago
Great analogy, considering that it is often significantly easier to beat the competition ('you') than bring a new product to market ('the bear').

larrywright 16y ago

I seem to recall hearing once that this was how Subway determined whether a location was a good spot to put a restaurant. If there was a McDonald's, Burger King, etc nearby then they moved in. The logic was that if it was good enough for the big guys, it was good enough for them. I always thought it was a clever way to avoid paying for market research by piggybacking on someone else's.