Difference between fragmanted and declining industry
Answers
Fragmented Industries
A fragmented industry is one without a dominant player. Many times the business itself is small, but the industry overall can be large. Two examples would be landscaping companies and barbers. There's plenty of them, but there's not really a major player in most markets.
Why are there so many fragmented industries? Here are some characteristics of fragmented industries:
Low entry barriers
Low level of product innovation
High need for trust and local firms inspire more trust
Lack of need for standardization
No real economies of scale
An emerging industry is one centered on a new product or service. There's usually not many companies involved in the beginning, so competition is low. But marketing costs may be high because at the start, the product or service is an unknown quantity.
One of the key advantages of being a company in an emerging industry is the first mover advantage: Positioning your company to be considered the technology leader in your particular space so it can have a competitive advantage. Being first can also give you more time to perfect your product before other companies jump into that space. You can also begin to build brand loyalty faster when you're the first company to market with a product.