Organizations Use Focus Strategies to Seek Gaps in Broad Market

question 9

Multiple Choice

Organizations use focus strategies to seek gaps in broad market segments or to find gaps in competitors' ranges. Thus, focus strategies help to seek out unfulfilled market needs. The focused operator then concentrates all value chain activities on a narrow range of offerings. Focus strategies can be oriented towards being the lowest cost producer for a particular segment (for example Aldi, in the supermarket sector) or towards supplying a differentiated offering for a narrow target segment willing to pay a higher price (for example, Vans, in the trainer market) .

• A) Differentiation.
• B) Cost-leadership.
• C) Focus.
• D) Generic.

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Definitions:

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand dynamics.

Units

Basic measurement or quantity of a product, used to track inventory, production, and sales in various contexts.

Total Revenue

The entire amount of income received by a firm from selling its goods or services before any expenses are deducted.

Total Cost

The sum of fixed and variable costs incurred by a firm in producing and offering a product or service for sale.