Which of the following statements is true about fragmented industries?
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 often composed of numerous small to medium-sized companies that operate in a local or regional market. Due to the lack of dominant players, companies in fragmented industries often have to compete on differentiation, which requires them to use focus strategies to meet specialized customer needs.

Which of the Following Statements Is True About Fragmented Industries