The major opportunity facing firms in fragmented industries is
A) refining their current products and emphasizing an increase in service quality.
B) developing new products and technologies.
C) creating a first-mover advantage through technological leadership.
D) the implementation of strategies that began to consolidate the industry into a smaller number of firms.

Question

Quizplus · Accepted Answer

Fragmented industries have many small players with small market shares. This often leads to inefficiencies due to duplication of efforts. Implementing strategies that consolidate the industry into a smaller number of firms through mergers and acquisitions can lead to economies of scale, cost savings, and increased competitiveness. Therefore, the major opportunity facing firms in fragmented industries is the implementation of strategies that began to consolidate the industry into a smaller number of firms.

The Major Opportunity Facing Firms in Fragmented Industries Is