When a company targets a certain segment or niche, and customizes its offering to the needs of that particular segment through the addition of features and functions, the company is pursuing a _____ strategy.
A) broad low-cost
B) broad differentiation
C) product substitution
D) focus low-cost
E) focus differentiation

Question

Quizplus · Accepted Answer

The company is pursuing a focus differentiation strategy, which means it is targeting a specific segment or niche and customizing its offering to meet their particular needs. This is in contrast to a broad differentiation strategy, where the company targets a wide range of customers with a highly differentiated offering, or a focus low-cost strategy, where the company targets a specific segment with a low-cost offering. The other options, broad low-cost and product substitution, do not accurately describe the strategy outlined in the question.

When a Company Targets a Certain Segment or Niche, and Customizes