Fragmented industry:

In business, fragmentation is a process where business activities are segmented spread over a
network (Helg & Tajoli, 2004, p. 5). In fragmented industry no single company has enough share
of the market to influence or move the industry’s direction (Draganova & Stoyanova, 2016, p. 8).
According to Volberda, fragmented industry refers to a market that lacks major players that
dominate the industry. (2010, p. 7) The market consists of several small to medium-sized
companies that compete with each other and large enterprises (Fragmented Market, 2018). Quain
a researcher said that a fragmented market provides small business owners with opportunities to
compete (2018). Generally fragmented industries has low entry barriers, low level of product
innovation , lack of need for standardization , and no real economies of scale (Whitsett, n.d.).
Sriram noted that diseconomies of scale and local demand are also responsible for fragmentation
(2016).

References:

Helg, R., & Tajoli, L. (2004). Patterns of International Fragmentation of Production and
Implications for the Labor Markets. SSRN, 5. https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=540902

Draganova, D., & Stoyanova. (2016). University of Bradford. Learning and Skills Development
in a Fragmentedindustry., 8.
https://bradscholars.brad.ac.uk/bitstream/handle/10454/4311/DStoyanova%20PhD
%20November%202009.pdf?sequence=3&isAllowed=y

Volberda, H. W. (2010). European Management Review. Crisis in Strategy: Fragmentation,

Integration or Synthesis, 7. https://doi.org/10.1057/palgrave.emr.1500013

Quain, S. (2018, November 9). The Advantages of a Fragmented Industry.

https://smallbusiness.chron.com/advantages-fragmented-industry-30745.html

Whitsett, D. (n.d.). Competitive Strategies in Fragmented, Emerging & Declining Industries.

Study.Com. Retrieved August 30, 2020, from
https://study.com/academy/lesson/competitive-strategies-in-fragmented-emerging-
declining-industries.html

Sriram, S. (2016, February 3). How to navigate strategy in a fragmented industry. BLoC.
https://bloncampus.thehindubusinessline.com/columns/simply-strategy/how-to-navigate-
strategy-in-a-fragmented-industry/article7842590.ece

Fragmented market. (2018, February 7). Monash Business School.

https://www.monash.edu/business/marketing/marketing-dictionary/f/fragmented-market