Consolidation of Highly Fragmented Service Industries Module Note Roger Hallowell 2002
Problem Statement of the Case Study
[I] t has been noted by researchers that highly fragmented service industries have become increasingly common, as companies have become so complex that it becomes difficult for them to gain competitive advantage and to understand customers’ needs in such complex industries. These complex companies have been found to be less competitive than companies that are more organized. Furthermore, firms in highly fragmented service industries tend to be small, and this small size has led to lower market power, resulting in lower profitability and more financial instability (Hallowell 2002).
Recommendations for the Case Study
– The main focus of this module is on the consolidation of highly fragmented service industries in major global markets. – In these sectors, businesses are generally quite small, with few assets, and a high degree of integration. – A common characteristic of these markets is high competition, and in general, little differentiation in terms of customer needs or value propositions. – The major challenges in the consolidation of highly fragmented service industries are the following: – First, identifying the most efficient and effective ways to consolidate
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In a paper titled “Consolidation of Highly Fragmented Service Industries,” Roger Hallowell provides a review of the existing literature, identifies major challenges, and suggests possible solutions for managers who must contend with highly fragmented service industries. A major challenge facing companies in service industries is the existence of multiple, fragmented service markets that are difficult to penetrate and exploit profitably. Fragmentation often occurs as a result of market fragmentation, which refers to the breakdown of the original market or marketing structure in
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In 1972-3, the business world was in crisis, and it was a matter of survival for the leading industries. Two years later, the US Congress established what would come to be called the Porter’s model to identify the ‘economic forces that shape competitive advantage in today’s dynamic and rapidly changing international business environment’ (Hallowell, 2002, p. 1). Porter’s 4Ps are Price, Product, Place, and Promotion. In the 1970s,
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