Which of the following statements about fragmented industries is true?
A) They are usually characterized by large, mass-production operations.
B) They essentially enjoy a national brand loyalty.
C) They require companies to use focus strategies to meet specialized customer needs.
D) They do not attract new entrants as they have extremely high entry barriers due to economies of scale.
E) They are usually dominated by one or two large companies that enjoy the power to influence industry prices.

Question

Quizplus · Accepted Answer

Fragmented industries are usually made up of many small players, leading to a lack of industry leaders and a need for companies to differentiate themselves and use focus strategies to meet specialized customer needs.

Which of the Following Statements About Fragmented Industries Is True