The "focus strategy" is one of the "three basic strategies" in competitive strategy proposed by Michael E. Porter, an American management scholar who is well known in Japan, and is a strategy of concentrating products and services on a specific market.
Even the GAFA companies were initially list of australia consumer email focused on social networking sites within universities, Amazon on online retail, and Google on search engines. Of course, they had big plans for the future, but they adopted a focused strategy until they got on track. No company was a big corporation from the beginning.
A focus strategy is an important strategy, especially for startups with limited capital. For small companies with limited people, materials, and money, it is important to first establish a position in one market and then expand into other markets. Once you stand out in one market, more and more companies will invest in you, and you will ride the wave of growth.
In this article, we will introduce an overview of Michael Porter's "focus strategy," which B2B marketers should also know about, the steps to get started with a focus strategy, and recommended books and papers by Michael Porter.
What is Michael Porter's "concentration strategy"?
Michael Porter's "focus strategy" is one of the three strategic pillars proposed by Michael Porter, a professor at Harvard Business School, in his book "Competitive Strategies" in 1980: "cost leadership strategy," "differentiation strategy," and "focus strategy."
A focus strategy is a strategy in which you focus your products or services on a specific market. By focusing on a specific market, you can invest resources in customizing your products and services to meet the needs and practices of that specific market, thereby increasing customer satisfaction.
You can also focus on your marketing strategy, making branding easier. As a result, you'll be more likely to make a profit.
The choice of market is important, and in order to get an above-average return on investment, it is important to choose a market where your company has the strengths, where competitors are weak, and where you have the potential to grow.
There are various types of market segmentation techniques (see below).
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There are many companies in the SaaS industry that have been successful with a focused strategy. None of them have a long history in business, but they are growing rapidly.