focused strategies are preferred by companies

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The main difference is that here the company focuses only on a part, and not on the whole market or even several markets, as in the examples above. That is, the business does not focus on quantity and variety, but on a narrow focus of production capabilities. Focusing can be of two types:


Companies that focus on a broad specialization may not serve some customers bosnia and herzegovina phone number list with specific preferences well. For them, such a product will not be suitable.

Then buyers, in order to satisfy their needs, turn to specialized firms that are ready to produce the necessary order for them. Often the focusing strategy is oriented towards special, best materials, hand-made products.

Often, that do not have a lot of resources. They realize that it will be difficult to enter a large market and compete with competitors, so they strive to take their position in narrow areas within certain financial and other restrictions. However, this is not always the case.


Let's summarize and compare all the options of this competitive strategy according to Porter using the example of a juice producer:

Cost and expense minimization strategy - the company sells 1 packaged type of juice - apple, but at a record low price.
Broad differentiation strategy - the company sells packaged unique juices at high prices: multi-fruit, blackberry-pomegranate and strawberry-coconut.
Cost Focus Strategy - The company sells one type of juice - tomato juice - at a low price in only one city with a population of 200,000 people, where residents love this taste of the drink.
Focus on product differentiation - a fresh bar that prepares expensive freshly squeezed juices right in front of customers, mixing any fruits and berries on request.