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Explain a fragmented industry

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Reference no: EM132649797

The three reasons for fragmentation are;

  1. A lack of scale economies may mean that there are few, if any, cost advantages to large size.
  2. Brand loyalty in the industry may primarily be local
  3. The lack of scale economies and national brand loyalty implies low entry fragmented.

Question 1. Explain a Fragmented Industry. Include the three (3) reasons for fragmentation.

Question 2: Why do you think the dry cleaning industry is fragmented?  

Question 3: If you were to try to consolidate the dry cleaning industry what strategy would you pursue and why?

Reference no: EM132649797

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