In fragmented industries firms can use product differentiation to help consolidate a market.

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In fragmented industries where there are many small players, product differentiation can help firms stand out and attract a loyal customer base. By offering unique features or benefits, they can gain an edge on competitors and establish a dominant position in the market. Over time, this can lead to consolidation as weaker players exit or merge with stronger ones, leaving a few dominant firms in control. Therefore, product differentiation can be an effective strategy for firms looking to consolidate fragmented markets.

In Fragmented Industries Firms Can Use Product Differentiation to Help