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Hello
I understand that cost leadership is having the lowest price in the industry.
Focus differentiation is specialization of the product to a particular market. Can you please tell me what cost focus is?My opinion:
Based on the definition of product differentiation i’m thinking its cost focused to a particular segment of the market but i’m also thinking, wouldn’t the entire market appreciate a lower price?Cost focus is low cost, but only selling to a narrow segment of the market. A more natural approach would be focus differentiation because focusing allow you to get really good at servicing that segment so that should allow you to differentiate and put your prices up.
Perhaps an example from the holiday market would work. Some companies focus on holidays for older people (Saga, in the UK); they could also decide that people living on pensions have low income, so they can cost focus: low holidays for the elderly.
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