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Consolidation of Highly Fragmented Service Industries, The

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Abstract

Designed to familiarize students with the consolidation of highly fragmented labor-dependent service industries, offering insights into service firm growth and the ways services can, and cannot, increase their efficiency and effectiveness. Two frameworks are presented illustrating the sources of benefits and disadvantages of size in consolidations and the important decisions managers must make in designing and executing a consolidation strategy. Intended to give managers insights into the consolidation phenomenon, illustrating the problems plaguing large, labor-dependent service consolidations. These problems explain why so few labor-dependent service consolidations have been successful. A rewritten version of an earlier note.

Keywords

Consolidation; Acquisition; Growth and Development Strategy; Service Industry

Citation

Hallowell, Roger H. "Consolidation of Highly Fragmented Service Industries, The." Harvard Business School Background Note 802-192, April 2002.

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