By using both the startegy cost leadership strategy and and focused differentiation , try to be attractive to customers in general.

focus/cost leadership strategy

focus/cost leadership strategy requires competing based on price to target a narrow market

Example :

REDBOX , Uses vending machine placed outside of the grocery stores and other of its retail outlets to rent DVDs of movies to the customer for only $ 1 and among other firm who offer DVDs on the rent , the REDBOX is offering on very low price

focus/differentiation strategy

focus/differentiation strategy is the onther method of Focus stategy . Let us understand the meaning of this. focus/differentiation strategy is require to offering unique feature that is fulfilling the demand of narrow market

Example

Let us take example of Breezes Resorts . This resort used focus/differentiation strategy. This resort caters to couple without children . This firm have resort where vacationer are guaranteed that they will not be annoyed by loud and disruptive children.

Briefly describe the market segment served by the firm. Rate the complexity and rate the divergence of the firm’s service operation as either “high” or “low” and justify your ratings.

We can rate the REDBOX as 7.5 out of 10 focused cost leadership strategy has been very successful; the firm has more than three thousand locations and has stores in 95 percent of US shopping malls. and we can Rate Breezes Resorts 6 out of 10. Each strategy has theadvantages that firms can potentially leverage to enhance their success as well as disadvantages that may undermine their success. In the case of focus differentiation, one advantage is that very high prices can be charged. Actual , these firms often price their wares far above what is charged by firms following a differentiation strategy

THis stratagy will not work in most efficient way at the time when another firm adopt an even narrower focus.