Focused differentiation is a business level strategy that targets a selected market segment with a differentiated product that provides the unique characteristics that the market segment calls for. The niche markets that corporations can target with this strategy could be distinguished by sales channels, corresponding to on-line, or by demographics, corresponding to families with small children. The advantages of differentiation are the model loyalty it builds with prospects, simple marketing by leveraging a product’s distinctive attributes and higher prices for high-demand items. However, differentiating a product normally requires a giant investment in research and improvement, and the product could also be so distinct that it attracts solely a niche market.

Doing so would require eliminating initiatives with a high threat of failure. As you’re employed by way of this process, you might discover that some objectives are extra complex than you originally anticipated and that they’re unachievable with existing assets. …