The Tech Strategy Podcast Strategies for Fragmented (and Other Highly Competitive) Industries (250)
Jun 11, 2025
Explore the intricacies of fragmented and highly competitive industries. Discover how larger firms leverage scale advantages for stability, yet face challenges with traditional business models. Delve into the reasons for persistent industry fragmentation and the role of personal service in staying competitive. Reflect on growth strategies and evolving insights while celebrating milestones in the journey of understanding digital transformation. Get ready for a fascinating exploration of market dynamics that shape today's business landscape!
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Competition Levels Define Industry Attractiveness
- Industry attractiveness depends on number of competitors and their ferocity.
- Even oligopolies differ greatly in how fiercely they compete, affecting profitability.
Fragmented Industries Resist Growth
- Growth and scale usually lead to strength and competitive advantages.
- Fragmented industries defy this logic as leaders remain very small without dominance.
Why Fragmentation Persists
- Fragmentation persists due to industry structure and diseconomies of scale.
- Customization and changing customer needs prevent standardization and achieving scale advantages.
