E-Marketing Professionals

With a differentiation strategy, the firm aims at a large market by offering a product viewed as quite distinctive. The company makes a product that has a broad appeal, yet is perceived by consumers as unique by virtue of its design, features, availability, reliability, etc. As a result, price is not important; and consumers become quite brand loyal.

With a focus strategy, a company seeks a narrow target segment through low prices or a unique offering. It is able to control costs by concentrating efforts on a few key products aimed at specific consumers, or build a specialized reputation and serve a market that may be unsatisfied by competitors.

According to the Porter model, the relationship between market share and profitability is U-shaped. A firm with a low market share can succeed by developing a well-focused strategy. A firm with a high market share can succeed through cost leadership or a differentiated strategy. However, a company can become "stuck in the middle" if it has neither a strong and unique offering nor cost leadership.