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Let’s see Focus Strategies in detail. A focus strategy is to develop and identify a particular niche in the market that focuses on launching a specific product or service in a market.
There are various ways in which the niches can be identified in an organization to maintain strategies. The particular areas to identify a place are usually based upon the buyer group, such as the kind of audience the product or service attracts.
Furthermore, porter’s competitive strategy is usually developed through implementing the geographic uniqueness of the product.
What is a focus Strategy?
As stated, a focus strategy mainly involves the targeted audience’s requirements with the offering of a niche customer in a range of products and services.
The focus strategy involves catering to a particular customer group that requires the service to brand them correctly and gain popularity.
As per Hitt, Ireland, and Hoskisson, a porter’s competitive strategy is usually an integrated set of mainly designed actions to create a vivid number of ideas generated to deliver services and goods and encourage integrated marketing.
Usually, an organization tends to make a focus strategy that serves better in a market-competitive world where the products and services are to be utilized.
Focus Strategy and Organizations
Several organizations and services have adopted this approach, such as The Coca-Cola Company has launched diet Cola as the target market consisted of many diabetic patients. Similarly, to cater to an international client’s audience, e-bay introduced a focus strategy in an online auction to gain clients and customers.
There are different variances of focus strategy, which is up to the organization to pursue and decide. Furthermore, the process is reserved for a narrow group of buyers in the sector.
One of the most prominent examples can be driven by a travel group that has targeted young female travelers to design and gain an advantage from their focus strategy.
The travel agency attributes to target a wide range of age groups to travel between the ages of 18-25 years, which are not usually financially independent and carry stringent budgets but are enthusiastic about exploring the world independently.
The agency designs a primary value chain to cater to these advancements and serve the segment. This includes offering an eye-catching destination, lodge requirements, and entertainment to entail the customer response. The main aim of this segment will be to provide budget-friendly services.
However, individual travel operators are reluctant to these segments as their strategies as they believe that this will not benefit their finance in a short time. Furthermore, they tend to cater to large groups and prefer mixed-gender in terms of trips. This shows the different focus strategies for various agencies and their importance.
Most importantly, it is extracted that a focus strategy is used to serve a limited number of people. In a nutshell, it requires them to be the focus and treated otherwise. Furthermore, in means of focus strategy, the target is understood and catered to inconsistently.
On the other hand, to implement a particular focus strategy, an organization needs to carry specific skills and resources capable of dealing with the idea and design.
Since a focus strategy is a more advanced form used when a specific organization cannot cater to a particular number of advances and deal with specific segments, it is crucial to keep track of porter’s competitive strategies and align with them to create better plans and generate ideas.
There are exclusively two different focus strategies discussed and can be applied when designing a particular plan or idea that includes either a focused low-cost system or a focused high differentiation strategy involving the performance. Both of these strategies and their importance will be discussed below.
Types of Different Focus Strategies.
The company should pursue different types of strategies in a vital corner, including either a low-cost or a differentiation approach. The two different kinds of focus strategies are:
Focus Low-Cost Strategy.
Focus Differentiation Strategy.
And, Focus on Low-Cost Strategy
This type of strategy usually comprises a low cost that is bearable for the company. It often means implementing a plan that has a remarkable entry in the niche market and has more excellent value in the niche market, and carries a minimal cost.
The low-cost focus strategy is usually targeted to the audience with a greater sense of dealing with the market and minimizing costs.
The organization usually follows this strategy and is generally competing against a cost leader with a cost advantage.
The organization adopts this strategy to cater to a buyer segment’s needs and requirements whose needs can be dealt with at the least possible cost other than the other market policies.
Focus Differentiation Strategy
Focus Differentiation Strategy’ is known as the market’s strategy by keeping in mind the chosen market’s unusual niches.
Usually, when an organization opts for a differentiation strategy, they look over the changes required to deal with the harrow buyer segment and deal in customized products that are far better than that of the competitor market.
On the other instance, porter’s competitive strategy consists of high-end products and not low-cost marketing, as discussed above. Usually, this strategy is much more successful as the focuser company tends to have a great idea about the targeted market and can differentiate them successfully.
How to implement Focus Strategies
It is essential to implement the provided focus strategy to gain insights and profits from it. One of the ideas for the implementation of the focus strategy is discussed below.
NetJets is an organization that owns multiple aircraft, and to earn through them you need a good number of corporate clients to rent them out for a couple of days.
It has several sizes in its aircraft design and implementation, which allows them to cater to the need of a vast niche market.
However, the aircraft is usually reused for other clients as its unique feature and aim state, “it provides fractional jet ownership giving individuals and businesses the benefits of aircraft ownership and more at a fraction of cost.”
The focus strategies are built in a manner to allow the organization to assess the aircraft that are mostly needed by the market and most rented out by corporate clients.
Warren buffet on Focus Strategies
Warren Buffet bought NetJets, and since then, it is fundamental in serving a narrower segment in the business travel industry.
To implement the focus strategy, everyone working in the NetJets is responsible for carrying the responses set out by clients and then making focus strategies according to these suggestions and requirements.
However, NetJets is an organization that is customized, and its position is itself that of cost-saving and in a similar way provides a highly differentiated strategy to cope with the niche market.
A focus strategy is utilized in implementing the customer’s needs and requirements as it allows the organization to become firm and implement its strategies for the betterment of the customers and the organization.