Discussion Chapter 6 - Why are industries fragmented

Discussion Questions : Chapter 6

This discussion based on different stages of industry life cycle, we first consider strategy in fragmented industry, we do this because fragmented industries can offer unique opportunities for enterprises to pursue strategies that result in consolidation of those industries, often creating significant wealth for the consolidating enterprise and its owners. Therefore we need to read chapter 6 carefully to answer the following questions..

1. Why are industries fragmented? What are the primary ways in which companies can turn a fragmented industry into a consolidated industry?

2. What are the key problems in maintaining a competitive advantage in embryonic and growth industry environments? What are the dangers associated with being the leader in an industry?

3. What investment strategies should be made by: (a) differentiators in a strong competitive position, and (b) differentiators in a weak competitive position, while managing a company’s growth through the life cycle?

4. Discuss how companies can use (a) product differentiation and (b) capacity control to manage rivalry and increase an industry’s profitability.

5. What kinds of strategies might: (a) a small pizza place operating in a crowded college market, and (b) a detergent manufacturer seeking to unveil new products in an established market use to strengthen their business models?