Focus

A focused strategy targets a narrow market segment with customised products or services. The internet offers new ways to compete by accessing markets less expensively (low cost) and providing specialised services and features (differentiation). This is especially importantfor small firms; the internet has opened markets for small players that were previously inaccessible.  Keenan Vision Inc. estimates that growth will reach 2.6 million by 2004, fully one-third of all small companies in the U.S.

Even though the internet offers possibilities to tap new markets, the same problems that face overall cost leaders and differentiators affect firms using a focus strategy. Achieving competitive advantage will depend on how effectively focusers use internet technologies.

Another advantage the internet provides focusers is technology driven. Scale economies have always created barriers to entry for smaller firms. But with the internet, technology-based efficiencies are available to firmsusing focus strategies. These efficiencies reduce the importance of of scale economics

Companies that focus, use the internet to create:

·        Permission marketing techniques that narrow sales efforts to specific customers who opt to receive advertatising notices

·        Chat rooms, discussion boards, and member functions for customers with common interests

·        Niche portals targeting specific groups with specialised interests

·        Streamlines browsing capabilities to focus customer search efforts within a specific domain

·        Virtual organising on-line “officing” to minimise infrastructure requirements

·        Procurement efforts using techniques to match buyers with sellers.

 

 

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