Chapter 6: business-level strategy and the industry environment. Overview: once strategic managers create a successful business strategy, they need to continually formulate and implement business-level strategies to sustain their competitive advantage overtime. Here we examine how companies in fragmented industries can develop new kinds of business-level strategies and consider challenges in developing a sustained competitive advantage. Strategies in fragmented industries: a fragmented industry is one composed of a large number of small and medium sized companies (e. g. restaurant, legal services). They are characterized by love barriers to entry. For some fragmented industries, the focused business model will be most profitable as they can specialize by customer group, customer need, geographic region others will pursue a cost leadership or the sales revenue enhancing advantage of differentiation. Some of these companies like burger king, wal-mart, macdonald become chains. Chaining: a strategy that establishes a network of linked merchandising outlets that act as a single organization.