Companies using “Focus Strategy” – incorporating ethics for differentiation – Jordan Yin (2024)

FAQs

What is an example of a company using a differentiation focus strategy? ›

Some firms using a focused differentiation strategy concentrate their efforts on a particular sales channel, such as selling over the Internet only. Others target particular demographic groups. One example is Breezes Resorts, a company that caters to couples without children.

In the case of a focused differentiation strategy, a company will focus on customizing its products. Rolls Royce and Pepsi Black are some of the examples of a focus strategy in real life.

Although you want your business to excel in all things, it has been proven time and time again that specialization is the key to success. In this article, we discuss how such industry leaders as Amazon, Apple and 3M, use differentiation strategies to achieve profitability and customer loyalty.

A differentiation strategy is a business approach in which a company provides its customers with something unique and distinctive that only it can offer. At Amazon, differentiation is done by using technology and human resources. The employees are trained to deliver the best possible service to its customers.

Apple is renowned for its successful product differentiation strategy, which has played a significant role in its dominance in the technology market. By focusing on sleek design, user-friendly interfaces, and seamless integration across its devices, Apple has differentiated itself from its competitors.

Differentiation Strategy: The Coca Cola company has always focused on differentiating its products in beverage industry, which comprised beverage portfolio of 3300 products. Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks, tea and coffee etc.

Apple's relentless focus on delivering exceptional user experiences has been a cornerstone of its success. From the intuitive design of its products to the seamless integration of hardware, software, and services, Apple prioritizes simplicity and functionality.

Coca-Cola's Diet co*ke is perhaps a global example of cost focus strategy. They created this product specifically for persons who have diabetes or other comparable conditions. For those who prefer low-sugar beverages, Diet co*ke was a fantastic addition.

Ferrari strategically uses a focus strategy to target a specific segment of the luxury sports car market. They have positioned themselves as a brand that caters to individuals seeking exceptional performance, exclusivity, and a unique driving experience.

2021). The strategy used by Nike and adidas is differentiation. Nike's strategy is continuous focus on innovation and emphasis on its research and development, and do their best to produce footwear that reduce injury, help in athletic performance and maximize comfort and enjoyment.

What is the differentiation strategy of Tesla? ›

Tesla uses broad differentiation to compete in its industry. The strategy entails developing unparalleled car models that differentiate Tesla from other automakers. Its car models, e.g., Model S, come with eco-friendly technology, making them attractive to a growing environmentally conscious market.

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking.

Pepsi has a diverse product portfolio. Pepsi Black was introduced as part of their focus strategy on customer segments looking for healthier beverages. The product has very low aspartame and higher caffeine content compared to Diet Pepsi and is sold as a zero-calorie variant.

Ritson notes that Microsoft has successfully differentiated itself from its competitors by positioning itself as a company prioritizing productivity and efficiency. This has allowed the company to appeal to a wide range of customers, including businesses and individuals.

Examples of companies that do this include Dell Computer, Amazon.com and Walmart. These companies all offer products that are pretty similar to other products in the marketplace, but they have lower costs. These low costs allow them to consistently capture higher profits than their competitors.

A company with a cost focus strategy is one that does not necessarily offer the lowest prices within the industry, but offers the lowest prices compared to competitors within its target market. An example of this is Netflix, which offers a niche product of streaming services to its target audience.

An excellent example of a focused differentiation strategy is Rolls Royce.

An example of a fully focused firm is Air Asia. Another is Shouldice Hospital in the USA, which performs only a single surgery (hernia) on otherwise healthy patients (mostly men in their 40s to 60s).