Up to this point, we’ve been discussing that pursuing a cost leadership strategy is difficult to maintain and a race to the bottom.
We said that a potentially more profitable strategy is to differentiate your company from your competition.
We showed how you can use a strategy canvas to determine which strategic moves you could make.
There is another strategic move to consider.
Moving from a broad market to a niche or focused market.
In fact, you can do both – differentiate and focus on a narrow market.
In the diagram, I highlighted the “focus” box, because that represents a differentiated strategy with a focus on a narrow market.
The first of many trade-offs is that there are not as many potential customers, but you can charge more because theoretically, you are adding more value since you know the customer so well.
Need help with your strategy and determining which strategic moves you should make? Contact Us.