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

Focus Strategy - Essay Examplecase, when a business decides to venture into a new and unique contrast 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 off stripe the costs incurred in making the new products. Furthermore, is because the uniqueness of the products and services allows the firm to enjoy a tumid percentage of the market share, allowing for immediate returns. The results also indicate that the focus dodging 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 some(prenominal) and still be assured of returns in the short and lon g term.Secondly, it is clear from the article that when a firm explores strategies that represent unique and rare resources, it is likely to achieve a competitive advantage. This is based on the idea that the resources cannot be duplicated by the firms competitors. Furthermore, such resources cannot be substituted, making it difficult for other firms to go 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 gain 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 unders tand the unique products and services that can be