Focus Strategy Essay Example | Topics and Well Written Essays - 750 words

Focus Strategy - Essay Examplecase, when a business decides to venture into a impudent and unique line of products or services, the initial costs incurred in developing them does not affect the general returns. This suggests that the consumers may be leave aloneing to pay a premium price for the differentiated products and services that will help offset the costs incurred in making the new products. Furthermore, is beca wasting disease the uniqueness of the products and services allows the firm to racket a large percentage of the market share, allowing for immediate returns. The results also indicate that the focus strategy in itself is sufficient to generate returns to the business. This view actually contradicts what was suggested by Michael Porter, who claimed that the focus strategy is not sufficient to go out returns to the business. Therefore, a business may decide to use either the differentiation or the focus strategy or both and still be assured of returns in the short and long term.Secondly, it is clear from the phrase that when a firm explores strategies that represent unique and rare resources, it is seeming to gain a competitive advantage. This is base on the idea that the resources cannot be duplicated by the firms competitors. Furthermore, such resources cannot be substituted, making it unmanageable for other firms to match the competition. If a firm makes use of a resource that is possessed by its competitors, it is likely that the competitors will exploit that resource in a similar way, making it difficult for the firm to use it to gain a competitive advantage. This suggests that for a business to use this strategy, it is important to understand the resources that exist in the business and understand how these resources can be made more profitable by either alter them to make them unique or exploring a completely unique set of resources. This calls for a careful psychometric test of the market trends and the needs of the customers. This will help understand the unique products and services that can be