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Industrial Strategy 2022

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Question:

What is the cost + focus strategy?

Author: Hjalmer Pedersen



Answer:

Cost+focus players identify areas where broader cost-based strategies fail because of the added cost of trying to satisfy a wide range of needs. A cost+focus player attacks a particular segment by way of cost leadership. e.g. Tesco aims for cost leadership in all areas. Iceland Foods focuses on frozen goods; outcompetes supermarkets due to specialized cost-focus strategy


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Cost+focus players identify areas where broader cost-based strategies fail because of the added cost of trying to satisfy a wide range of needs. 

A cost+focus player attacks a particular segment by way of cost leadership. e.g. Tesco aims for cost leadership in all areas. Iceland Foods focuses on frozen goods; outcompetes supermarkets due to specialized cost-focus strategy
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