Tell me if I'm wrong
I know it's a very (very) broad generalization (as industry specifics would magnify the accuracy or inaccuracy of this statement), but shoot it down if you find any holes in the logic:
It's better to look for an opportunity in an industry where market share is quite consolidated as opposed to an industry where marketshare is diffracted; it's easier to stand out when marketshare is consolidated and harder to standout when it is diffracted.
There are opportunities in both oligopolistic market structure and in a market where there is more competition. Whether it is "better" or not depends on the fund's strategy (Event-driven, active, deep-value etc.)
Well, I suppose in the consolidated industry, it may be easier to carve a defensible niche that you can expand upon (think Netflix versus Blockbuster). On the other hand, in a fragmented industry, it may be easier to consolidate for scale and reap efficiencies (think Walmart versus mom and pops in the 80s/90s).
According to me when opportunities came we should utilize that it will be the right time to take a right decisions.
That would entirely depend on the industry. In a highly fragmented industry, there's a lot of room for growth and any sort of advantageous advances (tech, etc.) may catch more market share. But, all of this would depend on the individual situation.
when opportunities got grabbed it don't let it go then after you won't get again..
one thing to consider is regulatory environment. oftentimes higher regulation creates oligopolistic environments because it increases barriers to entry but can also put a damper on the profit pool.
also, mature vs immature industry would play a big role in whether a consolidated vs dispersed environment is preferred.
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