INSTRUCTIONS

Review chapter 6 and answer the following questions:

1. Why are industries fragmented? What are the primary ways in which companies can turn a fragmented industry into a consolidated industry?

1. What are the key problems in maintaining a competitive advantage in embryonic and growth industry environments? What are the dangers associated with being the leader in an industry?

1. What investment strategies should be made by: (a) differentiators in a strong competitive position, and (b) differentiators in a weak competitive position, while managing a companys growth through the life cycle?
3. Discuss how companies can use: (a) product differentiation, and (b) capacity control to manage rivalry and increase an industrys profitability.

1. What strategies might these enterprises use to strengthen their business models: (a) a small pizzeria operating in a crowded college market and (b) a detergent manufacturer seeking to unveil new products in an established market?