Up to this point, we’ve been discussing that pursuing a cost leadership strategy is difficult to maintain and a race to the bottom.

We said that a potentially more profitable strategy is to differentiate your company from your competition. 

We showed how you can use a strategy canvas to determine which strategic moves you could make. 

There is another strategic move to consider. 

Moving from a broad market to a niche or focused market. 

In fact, you can do both – differentiate and focus on a narrow market.

move to niche

In the diagram, I highlighted the “focus” box, because that represents a differentiated strategy with a focus on a narrow market.

The first of many trade-offs is that there are not as many potential customers, but you can charge more because theoretically, you are adding more value since you know the customer so well.

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