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