Focus Strategy Essay

930 Words4 Pages
A focus or specialization strategy aims at building a competitive edge and carving out a market niche position by concentrating on only a portion of the market: Geographic area, type of customer, specific- specialized product line The objective of focus strategy is to serve the customers better than the competitors, where the key to success lies in choosing a market niche where buyers have distinctive preferences, special requirements or unique needs. There are two approaches to use focus strategy: 1: cost advantage- which is to achieve lower cost than rivals in serving the specific or narrow segment. 2: differentiation advantage- which is to offer customers in niche market something unique in the market:- product features, product innovation, product quality, customer responsiveness etc ROLLS- ROYCE A REVIEW The name ‘Rolls-Royce’ has always been associated with high quality products. Most people probably link the company with high quality aero-engines and motor cars. Rolls-Royce has not made motor cars since 1971. Instead, the company has transferred its core strengths and expertise into other markets in which it has the greatest competitive strengths. These are the civil aerospace,defence aerospace, marine and energy markets.The Rolls-Royce group is a global business with customers in 135countries and production facilities in 14 countries. It employs around 40,000 people focused upon the present and future requirements of civil aerospace, defence, marine and energy markets.It has 56,000 aero engines in service with 300 airlines, 2,400 corporate and utility operators and supplies more than 100 armed forces. The engines are used in all sizes of commercial aircraft from business jets to the largest modern airlines made by the two main aeroplane manufacturers Airbus Industrie and Boeing. BRIEF DESCRIPTION OF FOCUS STRATEGY USED BY ROLLS- ROYCE As

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