What strategy is characterized by focusing efforts on serving a few market segments?

The strategy characterized by focusing efforts on serving a few market segments is the focus strategy. This approach is built on the premise that by concentrating on a specific niche or a select number of market segments, a company can tailor its products or services more effectively to meet the specific needs of those customers. This can lead to stronger customer loyalty and competitive advantages within that niche.

The focus strategy typically involves either cost focus or differentiation focus. Cost focus aims to be the lower-cost producer in that niche, while differentiation focus emphasizes offering unique or superior value to target customers. Such strategies can be advantageous in markets where larger competitors may overlook niche segments or where customers have specific preferences that mass-market offerings do not satisfy.

Companies that successfully implement a focus strategy can develop deep insights into their customers' needs and create products or services that directly address those preferences, thereby enhancing customer satisfaction and loyalty. This strategic approach provides a clear direction for marketing efforts and resource allocation.