Attractiveness of focused low-cost differentiation strategy

Question

When is a focused low-cost or concentrated differentiation strategy more attractive?

Answer 1

Focused low-cost or concentrated differentiation strategies more attractive when following condition are meeting as given below:

a. The target niche is bulky enough to be cost-effective and offers good growth potential.

b. Industry leaders do not observe that having a attendance in the niche is crucial to their personal success.

c. It is expensive or hard for multi-segment competitors to situate capabilities in place to meet specialized requirements of the target market niche and at the similar time satisfy the expectations of their mainstream consumers.

d. The industry has lots of different and sections.

e. Few, if any, other rivals are attempting to specialize in the similar target section.

f. The focuser can fight effectively against the challengers based on the resources and capabilities it has to serve up the targeted niche and the consumer goodwill it may have built up.