In the world of business, success often comes down to focus — the ability to choose a specific niche and excel in it. Companies like Tesla and Rolls-Royce have employed a laser-sharp focus strategy and have seen incredible results.
Let’s take a look at some of the most successful examples of focus strategy in business and see how it has propelled them to the top.
🔝 Top 14 Focus Strategy Examples
- Casper & Gambini’s Company’s Strategic Analysis
- Ritz-Carlton, Dubai International Financial Centre
- Steve Job's Strategies That Made Him Successful
- Corporate Policy and Strategy Course: Generic Strategies
- Importance of Business Strategy in E-Business
- Focus Concept in Powerdrive Golf
- Corporate Strategy Decline and Recovery in Business
- Strategic Management Plan for BACHI Barcelona
- General Mills’ Strategic Choices
- Business Strategy for the Apple Inc.
- Google Inc.'s Corporate Strategy, Threats, and Need to Refocus
- Pembina Pipeline Corporation: Generic Strategy
- Forever 21 Company’s Turnaround Strategy Report
- The Southwest Airlines Company's Business Model
🔍 What is Focus Strategy?
The focus strategy is a business model that is part of Porter’s competitive strategies. It involves concentrating on one particular market segment. Unlike traditional marketing approaches that aim to sell to as many customers as possible, the focus strategy narrows the target market down to one or a few untapped or underserved niches.
What Are the Four Basic Focus Strategies?
|Focused low-cost strategy||This is the most preferred option that involves providing a product that meets the customers’ needs at a reduced cost.|
|Focused differentiation strategy||This variant involves offering products with customized attributes compared to the competitor’s.|
|Focused product design strategy||This model targets customers’ distinctive preferences.|
|Focused competitor’s apathy model||This strategy focuses on areas the competing businesses are not interested in or care less about.|
What Companies Use Focus Strategy?
The list of companies that employ focus strategies is constantly growing. One is PepsiCo, which targets customers interested in healthier beverages. Others are eBay, which is mainly interested in online auctions, and Amazon, which became famous by focusing on selling books. Bisys Group, Tesla, Motel 6, and Toyota also use focus strategies.
✅ How to Create a Focus Strategy
To create a comprehensive focus strategy, businesses must follow five essential steps:
- Step 1: Conduct a SWOT analysis to identify the organization’s strengths, weaknesses, opportunities, and threats.
- Step 2: Perform a Five Forces analysis to understand the company’s competitive landscape.
- Step 3: Compare and communicate the SWOT and Five Forces analysis results to the stakeholders.
- Step 4: Establish specific, measurable, achievable, relevant, and time-based objectives for the focus strategy.
- Step 5: Verify the company’s alignment with strategic objectives. They should also evaluate whether it meets long-term targets and values while strengthening the brand’s image.
🔥 Focus Strategy Examples: Best Companies
When you think about applying a focus strategy, numerous firms that have excelled with it come to mind. Here is a look at the best three.
Rolls-Royce Focus Strategy
Rolls-Royce uses a differentiation-based model that caters to a smaller segment of clients seeking prestige and superior quality in their cars. This strategy has proven highly effective in positioning Rolls Royce as a leader in quality, setting it apart from its competitors who pursue a more general approach to driving sales.
Tesla Focus Strategy
Tesla, like Rolls-Royce, also utilizes a differentiation-based focus model. This strategy has proven highly effective for the company, as it produces high-quality vehicles with eco-friendly designs that appeal to the growing number of environmentally conscious consumers. All Tesla vehicles have features that distinguish the brand from its competitors and further bolster its appeal.
Toms Focus Strategy
Toms, a famous shoe company, pioneered the “One for One” principle, implying that for every product bought, another one is sent to those in need. This focus strategy has worked effectively because it targeted the segment of customers that want to make a positive social and environmental impact.
Other companies using excellent focus strategies include:
Overall, focus strategy is an excellent marketing model, and anyone can use it to make their brand customer-competitive.