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Why are Industries Fragmented?

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Why are industries fragmented? What are the main ways in which companies can turn a fragmented industry into a consolidated one?

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Industries are fragmented for several reasons. This includes a low barrier to entry: special costs or knowledge or experience are not needed to start in the industry. Our text points out in some cases, like restaurants, customers prefer a local business or a unique style of food. Low cost of entry into the market includes transportation: if a company can use local resources it is cheaper and ...

Solution Summary

This solution discusses why industries are fragmented and explores the main ways in which compainies can turn a fragmented industry into a consolidated one. It gives examples and a reference.

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