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It is a manner of segment marketing. The company focuses on a narrow range of products rather than willing to capture the entire market range. Thus, it is named focus strategy. A typical example of focus strategy shall be Rolls Royce which focuses only on luxury automobiles. Focus can also be based on a particular geographic segment too. The simple logic behind this strategy is that an organisation can serve better along with better outputs when it focuses on a smaller geographical region or a narrow product line rather than wishing to have a mark on the entire market. When a company follows focus strategy, it has a competitive advantage. This is because the competitors might not be able to provide the specifications to the consumer as required. It reduces the bargaining powers of large procurers as well. To talk about the risks involved, focus strategy might also attract a lot of competitors which might split the profit margin manifold. Different aspects of focus strategy shall be discussed in Focus Strategy Assignment Help.
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Attributes of focus strategy
• Cost focus: It means that the company shall exploit the cost advantage in the narrow zone it concentrates in. Many companies reduce product costs so as to become leaders in their field. Naturally, lower costs attract more customers from average livelihood. It is necessary to evaluate the firm before opting for cost focus. The cost provided by the competitors has to be given attention as well. The firm receives cost advantage only when its cumulative cost of performing value activities happens to be less than that of its competitors. For a detailed account on the major attributes of focus strategy, go through Focus Strategy Assignment Help.
• Differentiation strategy: This strategy aims at providing the best product or service quality to the consumers. The quality has to be better than the rest of the competitors so as to gain maximum advantage. Uniqueness of the firm is what ultimately makes all the difference. The uniqueness might be in the service, time, scale or location. It is necessary to understand that while opting for a differentiation strategy, the product should be such chosen that consumers are willing to spend extra pennies for best quality. For gathering information on the types of strategy that can be used under focus strategy, refer Focus Strategy Assignment Help.
• The balance factor: As simple as it might look, the focus strategy in never a pick and choose between the aforesaid methods. A firm must always maintain a balance between the cost and differentiation. It cannot do away with quality entirely just to lower the cost. Neither can it culminate the price to provide promising quality of products and services.
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