Fragmented Industry
It can be defined as a business environment with a majority of small, geographically dispersed firms. There are no market leaders, nor is there is a firm that has to power the shape the industry. The organizations in fragmented industry operate in a perfect competition market structure; there will not be entry barriers and exit barriers except few legal and government rules and regulations.
Example: Healthcare Industry, Hotels and Auto repair centers, firms manufacturing
The advantages of operating in fragmented industry are no big players, low entry barriers, investment is low, and the differentiation strategy can be implemented to over the competition. There are also few limitations to operate in the fragmented industry but they can be solved in the following way:
Conclusion
The major advantage of firms operating industry is there is no single enterprise which directs the industry. The entrepreneurs can easily enter into fragmented industry initially to sustain in the business initially.
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