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Focus strategy Questions and Correct Detailed Answers
(Verified Answers)
A focus strategy is an
Ans: Action plan the business develops to produce goods or services that serve the
specific market segment.
Businesses using the focus strategy intend to
Ans: Serve the needs of a narrow customer segment better than their needs can be
met by the firm targeting its products to the broad market.
The premise of a focus strategy is based on three components:
Ans: • Needs of a group can be better served by focusing entirely on it
• Focusing on a specific group usually increases customer loyalty
• A business can sometimes garner an increased price as there may be a lack of
substitute products/services.
Focus Cost Leadership
Ans: An intention to produce goods or services for a narrow market segment at the
lowest cost.
pg. 1
Focus strategy Questions and Correct Detailed Answers
(Verified Answers)
A focus strategy is an
Ans: Action plan the business develops to produce goods or services that serve the
specific market segment.
Businesses using the focus strategy intend to
Ans: Serve the needs of a narrow customer segment better than their needs can be
met by the firm targeting its products to the broad market.
The premise of a focus strategy is based on three components:
Ans: • Needs of a group can be better served by focusing entirely on it
• Focusing on a specific group usually increases customer loyalty
• A business can sometimes garner an increased price as there may be a lack of
substitute products/services.
Focus Cost Leadership
Ans: An intention to produce goods or services for a narrow market segment at the
lowest cost.
pg. 1
