Fragmentation at consumer consumption locations

Products or services come in different styles. For some products or services, consumers always want to be nearby Get, for example, fast food, supermarkets, farmers markets, etc.

Specialized skills are the main source of competitive advantage in an industry

The rapid changes and diversity of market demands require rapid response and close cooperation among multiple functions.

The differences in consumer requirements for consumption locations make it impossible for highly concentrated large enterprises to meet consumer requirements.

It may be difficult to achieve the economies of scale required for economies of scale due to high transportation costs, high inventory costs or erratic sales fluctuations.

① Chain operation or franchise operation.

②Technological innovation to create economies of scale.

③Discover industry trends as early as possible.

The products or services of many scattered industries are general commodities, so there is little potential for improving differentiation in terms of the products or services themselves. In this case, an effective strategy is to increase the added value of the goods.

①Specialization of product types or product segments.

②Customer type specialization.

③Geographical area specialization.