Fragmented Market vs. Concentrated Market: What’s the Difference?
The main difference between Fragmented Market and Concentrated Market is that in a Fragmented Market, many small companies sell products, while in a Concentrated Market, a few large companies dominate.
Before we move to more differences, let’s first understand Fragmented Market and Concentrated Market:
- Fragmented Market: In a fragmented market, there are many different companies selling similar things, so no one company has a big piece of the pie. It’s like having lots of small slices instead of one big slice.
- Concentrated Market: In a concentrated market, just a few companies sell most of the stuff, making it seem like one or two slices are way bigger than the rest.
Now, let’s get to Fragmented Market vs Concentrated Market:
Major differences between Fragmented Market and Concentrated Market
Fragmented Market | Concentrated Market |
---|---|
Fragmented markets have numerous small competitors, each with a small market share. | Concentrated markets are dominated by a few large players. |
In fragmented markets, there is intense competition among many small firms. | In concentrated markets, competition is limited due to the dominance of a few major companies. |
Fragmented markets often have lower barriers to entry, making it easier for new businesses to join. | Concentrated markets may have high barriers, restricting new entrants. |
Customer loyalty is spread across various players in fragmented markets. | Concentrated markets may have higher customer loyalty towards the few dominant companies. |
Fragmented markets offer more diverse products and services due to the presence of numerous players. | Concentrated markets may have a more limited range of offerings controlled by the dominant companies. |
So, these are the main differences between the entities.
Also see:
- Email Copywriting vs. Email Marketing
- Direct Mail vs. Email Marketing
- Digital Advertising vs. Web Development
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