A cost-focus strategy focuses on a narrow target segment.

Question

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A cost-focus strategy aims to serve a narrow target segment by offering them a lower cost product or service. The strategy is based on the principle of cost leadership, where the company aims to achieve a low cost structure and pass on the cost savings to the customers. By focusing on a narrow segment, the company can achieve economies of scale and become more efficient in its operations.

A Cost-Focus Strategy Focuses on a Narrow Target Segment