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

Focus Strategy - Essay Example case, when a business decides to venture into a new and unique line of products or services, the initial costs incurred in developing them does not affect the overall returns. This suggests that the consumers may be willing 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 because the uniqueness of the products and services allows the firm to enjoy 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 assure 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 article that when a firm explores strategies that represent unique and rare resources, it is likely to gain a competitive advantage. This is based on the idea that the resources cannot be duplicated by the firm’s competitors. Furthermore, such resources cannot be substituted, making it difficult 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 improving them to make them unique or exploring a completely unique set of resources. This calls for a careful examination of the market trends and the needs of the customers. This will help un derstand the unique products and services that can be