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A fragmented industry is one composed of: a. a single large company that has the power to determine prices. b. a small number of single proprietorships. c. large companies and their subsidiaries. d. companies that operate in different locations across the world. e. a large number of small- and medium-sized firms.

Respuesta :

Answer:

e. a large number of small- and medium-sized firms.

Explanation:

Fragmented Industry: It is an industry in which there is no market leader or influencer which lead the industry in a single direction, however, there are many small and medium sized firms competing with each other to increase their market share. Industry is large and widely spread out, however, no organization in the industry are able to dominate. Fragmented industry is an advantage for small business to survive and can have equal opportunity in the market.

There are few advantages of fragmented industry:

  • There is opportunity for differentiation.
  • Lack of entry barrier.
  • Lack of one large organization or dominant organization.

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