Organizations use focus strategies to seek gaps in broad market segments or to find gaps in competitors' ranges. Thus, focus strategies help to seek out unfulfilled market needs. The focused operator then concentrates all value chain activities on a narrow range of offerings. Focus strategies can be oriented towards being the lowest cost producer for a particular segment (for example Aldi, in the supermarket sector) or towards supplying a differentiated offering for a narrow target segment willing to pay a higher price (for example, Vans, in the trainer market).

Question

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Focus strategies are described as concentrating on a narrow market segment to meet unfulfilled needs, either by being a low-cost producer or providing differentiated offerings.

Organizations Use Focus Strategies to Seek Gaps in Broad Market