Which competitive strategy is characterized by focusing on a specific market niche?

The focus strategy is characterized by concentrating on a specific market niche, allowing organizations to tailor their products or services to the unique needs of that niche. This approach often involves a deep understanding of the target segment, enabling companies to deliver specialized offerings that appeal to a distinct group of customers. By honing in on a particular market, businesses implementing a focus strategy can develop competitive advantages such as superior customer service, unique product features, or niche-specific marketing techniques.

Focusing on a niche market often leads to reduced competition and increased customer loyalty since the company can cater specifically to the preferences and requirements of the targeted audience. This strategy contrasts with approaches that seek to appeal to a broad market, allowing businesses to become experts in their specific area rather than spreading their resources thin across a wider audience.