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is an industry with a large number of small or medium size firms where no firm has a significant market share or strong influence on the industry. Examples include industries related to services, retailing, distribution, wood and metal fabrication, agricultural products, and creative businesses
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STRATEGIES USED IN FRAGMENTED INDUSTRY
But how to formulate a competitive strategy in fragmented industries
Determin e
Determin e
If fragmentation cannot be overcome, determine the best alternative for competing in the fragmented industry.
Determin e
Determin e
If fragmentation can be overcome, determine the best defendable position for the firm to adopt.
Examine^ Examine^ Examine the causes of fragmentation one by one to determine if and how they can be overcome.
Identify^ Identify^ Identify the causes of fragmentation in the industry.
Conduct^ Conduct^ Conduct a full industry analysis to determine the structure of the industry and the position of competitors.
G