Industry Types and the Opportunities They Offer (Fragmented Industries)

Fragmented Industries
                   A fragmented industry is one that is characterized by a large number of firms of approximately equal size. The primary opportunity for start-ups in fragmented industries is to consolidate the industry and establish industry leadership as a result of doing so. The most common way to do this is through a geographic roll-up strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.13 Zipcar, the car sharing company profiled in Case 6.2, is currently engaged in a geographic roll-up strategy to consolidate the car sharing industry and position itself as the industry leader. In 2007, it merged with Flexcar, its primary domestic competitor. It 2009, it acquired a minority interest in Avancar, the largest car sharing company in Spain. In April 2010, it acquired Streetcar, a London-based car sharing club.