Strategic Management and Business Policy - Essay Example

Example of Consolidated Industry: The energy industry is an example of a consolidated industry. In Karachi, energy is only supplied by Karachi Electric Supply Company (KESC) and the company has the ability to set prices according to their own will.On the other hand, in the case of the fragmented industry, there are huge numbers of medium and small-sized enterprises and no organization has the ability to set prices. In this type of industry, prices are set by market forces. The organizations in this industry experience perfect competition.

There are no or very few entry barriers in this industry, this means that companies can enter and exit the industry whenever they want to. If an organization wants to operate in this kind of industry, it has to change itself with changes in technology and the environment. Examples of the fragmented industry include food, juice, clothing, health care, and the dry cleaning industry. In Pakistan, there are more than 250 juice producing companies in the juice industry.