BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The focus strategy refers to focusing on the “non-price” attributes of a company’s products. To generate above average returns, a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

Detailed explanation-2: -A focus strategy is a competitive strategy to direct marketing and sales efforts to a specific market segment. This strategy seeks to exploit underserved or undiscovered segments of a target market.

Detailed explanation-3: -A focused cost leadership strategy requires competing based on price to target a narrow market (Table 6.6). A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.

Detailed explanation-4: -Focus Strategy Examples The focus strategy example is Pepsi Black. Pepsi focuses on broad markets to serve many customers. However, it focuses on a specific market to serve a target group. It produced a healthier product with lower levels of aspartame.

Detailed explanation-5: -Focus. The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others.