Focus AS A Competitive Strategy.

BMW Uses The Cost Focus Strategy To Outperform Competitors.

BMW Uses The Cost Focus Strategy To Outperform Competitors.


Focus strategies are more useful for smaller companies or those with a more narrow or niche audience. Porter divided the focus strategy into two sub-strategies;

  • Cost focus and
  • Differentiation focus.

This is when a firm pays special attention or specialises in a group of customers.

When serving a small group of customer, the firm or business can outperform competitors.

Risk Factors In Implementing These Competitive Strategies.

Risk In Implementing A Cost Leadership Strategy

  • Change in technology
  • Competitors can simulate or copy
  • It is a risk not focused on changing the product features and marketing methods.
  • Increment in input expenses.

Risk In Implementing A Differentiation Strategy.

  • High cost for uniqueness; if you over price or out price, you may lose that edge attained.
  • Uniqueness is no longer valued by customers when customers become more demanding.
  • Competitors can make similar products and narrow the value of the uniqueness.

SEE HERE [ Differentiation As A Competitive Strategy ]

Risk In Implementing The Focus Strategy.

  • The cost for the uniqueness may be too high.
  • Not much difference in demand between the special group of customers and the mass market.
  • Competitors can jump in the segment for the special group of customers.
The Three Major Competition Strategies, Differentiation, Focus And Cost Leadership Approach.
The Three Major Competition Strategies.

Summary On Competition Strategies In Marketing.

Each business needs to select a basic competition strategy because each competition strategy have different advantages to the business.

However, competition strategy in marketing is applied at each level for each brand.

Each brand must have its own unique competition strategy, which creates a strong position and competitive advantage for the business in competing with its competitors.

In selecting a suitable strategy, the business should identify the following;

  • Who are the competitors
  • What is the position of the business in comparison to its competitors.

Normally, the firm would attack;

  • Weaker competitors
  • Compete with ‘equal’ competitors
  • Classify the competitors that could benefit the business and those who are trouble makers.

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