Small companies, at least the better ones, usually thrive because they serve narrow market niches. This is usually called market focus, the extent to which a business concentrates on a narrowly defined market. This is a generic strategy that applies a differentiation strategy approach, or a low-cost strategy approach or a combination and does so solely in a narrow market niche rather than trying to do so across the broader market. The narrow focus may be geographically defined or defined by product type features, or target customer type, or some combination of these.
Market focus looks for identifying opportunities and then capitalizing on them. This perspective provides the business with the best way for profitable and sustainable growth.
‘Tagoras defines a market-focused approach as when your company pours its resources into “determining new or emerging needs in your market and coming up with new products [or services] to meet these needs. Don’t assume you know your market needs, but rather [be] bent on discovering them and serving them.”’ As per Small Business, the market focus strategy empowers a business for dominating a niche by focusing on a market’s limited part.
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