Question

what does means Fragmented industries refering to

Room for innovation

No real economies of scale

Need for standardization will not be in fragmented industries

No big players ina fragmented instruies

Local firms are more common ina fragmented industry?

Entry barriers are low in a fragmented industry?

Answer 1

The Indian travel agency industry is a highly fragmented industry with lots of companies.Most organized players are in metros.

There is a low tbreatbof substitutes as travel priorities are high in a household.

There is high industry rivalry fue to low switching costs but it is not a cut throat competition.

Even though the buyers are fragmented ,their high switching power attributed to low aeitchswi cost gives them a reasonable buying power.

Ability to see direct instead of using channels gives the suppliers more power in this kind of Industry.

Even though the entry and the exit barriers are low , it is difficult to scale up as it involves complex distribution channels.