Focused differentiation additionally targets a market area of interest, but rather than competing on cost, companies utilizing this strategy offer the area of interest market unique products and services for which they’ll cost a premium price. To succeed, this strategy should establish market niches which might be worthwhile, where competitors is weak and where there aren’t any sensible substitute products. Focused cost management is applied by focusing on a subset of the overall market and offering low prices by decreasing working costs to a level that’s below the business average. This strategy requires both an intensive understanding of the area of interest market being targeted and the power to leverage this knowledge to scale back working bills. To achieve success, the built-in value and buyer differentiation strategy must continuously adjust to reduce prices whereas simultaneously adding distinctive features that prospects demand.
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