The positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment is called a _____.
A) focus strategy
B) retrenchment strategy
C) downsizing strategy
D) stability strategy

Question

Quizplus · Accepted Answer

The focus strategy involves targeting a specific market segment, geographic region, or group of customers with a specialized product or service. The company may use either cost leadership or differentiation to create a competitive advantage within this narrow focus. This approach allows the company to concentrate its resources and efforts on a specific area, rather than trying to compete with larger, more diversified competitors on a broader scale. Retrenchment, downsizing, and stability strategies are not focused on a particular market segment or geographic region, but rather on the overall direction and goals of the company.

The Positioning Strategy of Using Cost Leadership or Differentiation to Produce