Many of us now running with competitive business are in search of differentiating our product or services
in particular and definite way. Focused strategy could be helpful to us in
being different from competition.
 
Focused strategy tends to apply for specific and selected market segment. It seeks to provide high perceived
value justifying a substantial price premium to its targeted market. There was
one good case about saloon car market where Ford, Rover, Renault and Japanese
competitors are all competing in one market and facing difficulty in promising
and convincing customers that their product differs from other competitors in a
market. A Lexus was also in a saloon car market and not in competition directly
with these other manufactures. They are offering a car with higher perceived
value at a substantial higher price that of other saloon car in market. It
helps them in attracting different sorts of customer and a different market
segment.
 
Though focused strategy can lead to some important issues which must need to consider. One needs to make choice
between broad differentiation across a market or more focused application. As
globalization comes into existence managers have to decide between broad
approaches in increasing global market. It could lead to limited expansion of
organization and future development and growth could affect.
 
One must have to decide which market segment have to target and focus with give value of product. It is
difficult for organization to compete in different market with different needs
and people tests. Focused strategy may conflict with expectation of
stakeholders.
 
Focused strategy is best suitable for new ventures. It would help them in growing fast in focused way in specific
market and then after they can look after expansion and exploring segment. You
must need to monitor and keep watch on benefits and advantages of focused
strategies because market situation can change any time with change in external
environmental factors. Difference between segments can be eroded and it asks
organizations to open to much wider competition.
 
With focused strategy you can be much sure of your probable outcome and need of targeted audience. It helps you
better in defining product features and offering perceived value to definite
market segment.