Know the advantages and disadvantages of focus strategies. When asked to name a few companies that uses the focus strategy, a strategy that targets a niche market by differentiation or cost advantage, a few companies immediately came to my mind. A focus strategy is usually employed where the comopany knows its segment and has products to competitively satisfy its needs. It is a very broad term that encapsulates everything a business does to make money. Use the balanced scorecard to describe and communicate strategy in consistent, insightful, operational terms. A strategy includes your companys goals and objectives, the type of productsservices that you plan to build, the customers who you want to sell. In general, the strategy can be offensive or defensive with respect to competitive forces. Research suggests that detection of either of the generic strategies, differentiation or cost leadership, enables a firm to achieve better. Companies using focus strategy incorporating ethics. Companies that use a cost leadership strategy and those that use a differentiation strategy share one. Pdf market focus strategy and organizational performance of.
A marketing strategy in which a company concentrates its resources on entering or expanding in a narrow market or industry segment. Companies using focus strategy incorporating ethics for differentiation. Companies that succeed with a focus strategy understand the dynamics and unique customer needs of their market niche. Focused cost leadership and focused differentiation mastering. Generic business strategy as driver of competitiveness in. Cost leadership, product differentiation and focus strategy were the indicators measured by this study. They may achieve the advantage by using a lowcost strategy, whereby a company attempts to.
The goal of the focus strategy is to become the leader in the determined niche by serving the designated group better. Combining a market segmentation strategy with a product differentiation strategy is an effective way of matching your firm. Focused cost leadership and focused differentiation. The strategyfocused organization servicing companies. The idea behind focus strategy is developing, marketing and selling products or services to a niche market, such as a particular type of consumer, a specific product line or a targeted geographical area. Companies that use a cost leadership strategy and those that use a differentiation strategy share one important characteristic. The restructuring was aimed at achieving improved focus on the companys core beverage pepsicola and snack food operations fritolay. Business strategies for sustainable development based on the book business strategy for sustainable development. Focus is a strategy that enables a company to dominate a niche. Focus strategy is one of three generic marketing strategies. Porters generic strategies model does not suggest one strategy or focus is better than another. A focus strategy is one where a company decides to concentrate the resources of its marketing strategy on either expanding into a narrow market or segment or by entering it in the first place. A good strategic framework provides focus by limiting the number of directions the organization runs.
Firm seeking of using this use the integrated cost leadershipdifferentiation strategy ireland et. The company can make use of the cost leadership or differentiation approach with regard to the focus strategy. It is typically implemented when the agency involved already knows its targeted demographics and can meet the needs of each consumer effectively. The five generic competitive strategies semantic scholar. By successfully adopting the focus strategy since 1997, pepsico has emerged as the second largest consumer packaged goods company in terms of revenues in the world. Focus strategy is a great way for a brand or company to establish itself. The benefits of the focus group here are some of the many reasons you might consider using this strategy on your campus. These efforts to appeal to broad markets can be contrasted with strategies that involve targeting a relatively narrow niche of potential customers. Through a focus strategy, your company concentrates on a limited part of a market. Pepsicos focus strategy the case centre, for educators. From partnering with other firms and attracting top talent to acquiring new technology all comes under the gamut of. Differentiation enables the company to charge premium. Business strategy defines the approach, tactics and strategic plan adopted by a business to attract customers and achieve its business goals.