A potential pitfall of a focus strategy is that over time the cost advantages in a narrow market niche can erode,leaving the company with little profit.

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The advantages of a cost focus strategy may be fleeting if the cost advantages are eroded over time. For example, the Dell pioneering direct-selling model in the personal computer industry has been eroded by rivals such as Hewlett-Packard as they gain experience with the Dell distribution method.

A Potential Pitfall of a Focus Strategy Is That Over