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6 October, 02:27

Why are industries fragmented? what are the pri - mary ways in which companies can turn a frag - mented industry into a consolidated industry?

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  1. 6 October, 04:53
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    Fragmented industries have a large number of small and medium sized companies. Certain industries are fragmented because there are low barriers to entry like low costs, that makes it easier for more players to join the market. Another reason could be no benefits to economies of scale (aka not really cheaper to produce in bulk vs small amounts) so no one company gains a bulk of the market by producing and selling the most.

    Companies can turn a fragmented industry into a more consolidated industry by buying up their competitors in mergers, or creating franchises and chains.
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