The document discusses the focus strategy from GNPS, which emphasizes a narrow market scope and segmentation to achieve high profit margins and customer loyalty. While it offers benefits like competitiveness against larger foes, it also presents disadvantages such as vulnerability to market changes and technological disruptions. Additionally, the document outlines potential threats from low-priced competitors and conglomerates that can capture market share.

1. Idea Insights from GNPS
Focus Strategy
(Classic Framework)
Episode 15-41
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2. Idea Insights from GNPS
Classic Strategy Framework
• Many literature approaches to strategy
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Narrow
Market
Scope
Broad
Market
Scope
Uniqueness
Competency
Low Cost
Competency

3. Idea Insights from GNPS
Focus Strategy
• Also called “segmentation” strategy
• Narrow market focus
• Geographic location
• Narrow demographic
• Particular industry
• Single product line
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4. Idea Insights from GNPS
Benefits
• Benefits of Focus Strategy
• High profit margin
• Stay small
• Off the radar of large competitors
• High customer loyalty
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5. Idea Insights from GNPS
Disadvantages
• Narrow market scope
• Health of the market
• Disrupted by new technologies
• External threats
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6. Idea Insights from GNPS
Attacking the Strategy
• Low-priced products
• Global conglomerate
• Steal market share
• Competition offers “specials”
• Full product line offered (all markets)
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7. Idea Insights from GNPS
For More Information
• See the full post at the Idea Incubator Blog
• www.globalnpsolutions.com/idea-incubator/
• Free registration
• Contact me!
• 1-281-280-8717
• info@globalnpsolutions.com
• 2323 Clear Lake City Blvd., #180-177
Houston, TX 77062
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