Lulu background

Friday, March 18, 2011

{The Focus Strategy}

Of the three main competitive strategies outlined by Michael Porter (Focus, Differentiation and Cost Leadership), I fall in the "Focus" category.  This strategy implies concentrating the marketing effort on a particular buyer group, geographic region, or segment of a product line.  In my case, that would be a very well defined target market - the Eco-Millennial Bride.  As I work on my marketing plan and defining my target market, I will go into more detail about this particular client.

Every aspect of the company is developed around serving this client.  Sure, this could limit my ability to grow beyond the target market, but it also allows me the opportunity for above average profit margins.  I can also better protect my business against competitors because of my differentiating factors. "Focus can be used to select target markets lease vulnerable to substitutes or where competitors are weakest."  

This part of the section spoke to me the most:  "The entrepreneur with a strong talent or aptitude, but limited financial resources might find the focus strategy attractive."  Yup, that's me!  I can do a better job providing excellent service to a smaller, more well defined market, than a broader one.  "Later, having achieved recognition and reputation, the entrepreneur might consider building on those assets in a wider target market."  

(excerpts from "The Entrepreneur's Master Planning Guide" by John Welsh and Jerry White)

No comments:

Post a Comment