Let's imagine a group of penguins living together in Antarctica. When the penguins are all huddled together, they create warmth and protection for each other, just like how businesses benefit from being in close proximity to each other.
Now, imagine if one penguin decided to venture off on its own. It might be harder for that lone penguin to find food and shelter, and it might be at a greater risk of being eaten by predators.
Similarly, a business that chooses to operate in isolation might have a harder time finding customers and resources, and might be at a greater risk of failure. Hence, they opt Agglomeration effect. Agglomeration effect is a phenomenon where businesses and industries tend to cluster together in a particular location, creating a positive impact on each other's productivity and success.
So, just like how penguins benefit from huddling together in Antarctica, businesses can benefit from clustering together. It's like a big, happy, and productive family of happy feet!
Fun Fact: A group of penguins is called a colony, a rookery or a Waddle, but these terms are for a group of penguins on land. A group of penguins floating in the ocean is called a raft. The small chicks concentrate in groups called creches, which often remain together for warmth in the absence of a developed plumage.
In image: Happy Feet, font: BoldenVan Font by alexatype
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