BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A ____ industry consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price.
A
consolidated
B
segmented
C
fragmented
D
merged
Explanation: 

Detailed explanation-1: -A fragmented industry is an industry with a large number of small and medium-sized companies with no significant market share or influence on the industry. There are different reasons that can make an industry fragmented, low entry barriers, exit barriers, newness, etc.

Detailed explanation-2: -A fragmented industry consists of a large number of small or medium-sized firms, none of which is in a position to determine industry price.

Detailed explanation-3: -a. A consolidated industry structure: a. consists of several small companies or medium-size companies, none of which is positioned to determine industry price.

Detailed explanation-4: -A fragmented industry is one in which there are very many firms competing and, as a consequence, no ‘one’ player is big enough to influence the direction or growth of the industry. Restaurants, cab services, home-care services, auto dealership and the furniture business are some examples.

Detailed explanation-5: -Industry structure is a term which summarizes the barriers to entry and the competitive landscape of and industry. It comprises of capital intensity, advertising intensity, firm concentration, and average company size.

There is 1 question to complete.