What does "focus strategy" prioritize?

A focus strategy prioritizes targeting a niche market to excel in serving specific customer needs. This approach allows a company to concentrate its resources and efforts on a particular segment of the market, creating tailored products or services that specifically address the unique preferences or requirements of that group. By deeply understanding and meeting the needs of this niche audience, businesses can differentiate themselves from competitors that are taking a broader market approach.

This strategy leverages the idea that in catering to a specific segment, companies can achieve a competitive edge by either providing specialized offerings that are hard to replicate or developing strong brand loyalty among customers who feel their distinct needs are being met effectively. This focus not only helps in building relationships with customers but also often leads to superior customer satisfaction and retention.

The other approaches mentioned do not encapsulate the essence of focus strategy, which is centered on specialization rather than broad market coverage or low-cost leadership.