Describe the similarities and differences between the cost-leadership strategy and the focused cost-leadership strategy; and between the differentiation strategy and the focused differentiation strategy.

Question

What will be an ideal response?

Answer 1

Focus strategies target a narrower segment of the market than do the basic cost leadership or differentiation strategies. See Figure 5.1. The similarities between the focus strategies and their broader counterparts are evidenced by the fact that the value chains for the focus strategies and the broader strategies are identical. See Figures 5.2 and 5.3