Focus
A focus strategy requires the firm to carefully select a target market (Porter, 1985). The firm must have the core competencies to serve this market. This target market represents a small or niche of the broader market. Firms that choose a focus strategy to achieve competitive advantage need to thoroughly understand their target market. In addition that target market needs to be big enough to be profitable. Once the target market is chosen the successful firm will seek to dominate that market. Other firms will notice the opportunity and seek to take a share of the target niche.
Focus strategy works best when the customer has clearly defined needs and preferences. The firm needs to meet these needs and build a customer relationship better than any other competitors. Their ability to do so must be something that is hard to imitate in order to avoid losing their share to new entrants.
Example of focus strategy.
Focus strategy works best when the customer has clearly defined needs and preferences. The firm needs to meet these needs and build a customer relationship better than any other competitors. Their ability to do so must be something that is hard to imitate in order to avoid losing their share to new entrants.
Example of focus strategy.