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Industrial Strategy 2022

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Question:

What is the focus strategies?

Author: Hjalmer Pedersen



Answer:

A focus strategy targets a narrow scope / specific segment using either cost leadership or differentiation as the way of targeting. The focus player achieves competitive advantage by serving specific segments or areas better than those covering that segment as part of a broad portfolio. Focus builds specialist knowledge; can improve brand recognition and customer loyalty Per Porter, you don’t get Focus on its own: goes along with Cost or Differentiation So there are two types of focus strategy: 1. Cost + focus strategy (e.g. Ryanair). 2. Differentiation + focus strategy (e.g. Nutrogena; Ecover eco cleaning)


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A focus strategy targets a narrow scope / specific segment using either cost leadership or differentiation as the way of targeting. 

The focus player achieves competitive advantage by serving specific segments or areas better than those covering that segment as part of a broad portfolio. Focus builds specialist knowledge; can improve brand recognition and customer loyalty 

Per Porter, you don’t get Focus on its own: goes along with Cost or Differentiation So there are two types of focus strategy:
1.	Cost + focus strategy (e.g. Ryanair).
2.	Differentiation + focus strategy (e.g. Nutrogena; Ecover eco cleaning)
1 answer(s) in total