Before Picking a Business Strategy

We have talked about Differentiation Strategy and Cost leadership the previous mondays, we will be talking about Cost Focus strategy this week.
A cost focus strategy centers on a limited market segment or a particular niche. It requires the company to understand the idiosyncrasies of that market and the unique needs of those specific customers.
Companies that pursue a cost focus strategy are taking a risk by abandoning the mass market. While concentrating on a specific demographic may develop a loyal pool of customers, the company is basing its fortunes on a small group of buyers. The features that are attractive to this niche market may not appeal to the broader market.
Before selecting a business strategy you will need to identify the strengths and weaknesses of the company in addition to highlighting market opportunities and threats.

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