The focused differentiation strategy differs from the differentiation strategy in that:
A) The focused differentiators have a broader competitive scope
B) The value-creating activities of focused differentiators are more constrained
C) Focused differentiators target a narrower customer market
D) There are fewer risks with the focused differentiation strategy

Question

Quizplus · Accepted Answer

The focused differentiation strategy targets a narrower customer market than the differentiation strategy, which attempts to differentiate products or services across the entire industry. While both strategies aim to create unique and valuable products or services, the focused differentiation strategy focuses on a specific customer segment within the industry, rather than targeting the industry as a whole. This can allow for a more focused approach to value-creating activities, but also carries higher risks due to the smaller customer base.

The Focused Differentiation Strategy Differs from the Differentiation Strategy in That