In a short essay, discuss Porter's focus strategy
What will be an ideal response?
Answer: A company pursues a focus strategy when it concentrates on a narrow product or segment of the market. The goal of a focus strategy is to fill a niche in the market. A niche can be based on product, type of buyer, distribution channel, or geographical location of buyers. Research suggests that the focus strategy may be the most effective choice for small businesses because they typically do not have the economies of scale or internal resources to successfully pursue one of the other two strategies. Stouffer used a focus strategy with its Lean Cuisine line to reach affluent, sophisticated, calorie-conscious customers who wanted convenient but high quality products.
You might also like to view...
If a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable
Indicate whether the statement is true or false
What is the IRR of the F-22 Raptor project? The Lockheed Martin/Boeing F-22 Raptor is a stealth fighter aircraft. It was designed primarily as an air superiority fighter, but it is also capable of ground attack and other roles
Lockheed Martin Aeronautics is the prime contractor and is responsible for the majority of the airframe, weapon systems and final assembly. Lockheed Martin invested over $10B on design and manufacturing for the aircraft. Assume that those investments were paid for on Jan 1, 2003. Each aircraft will be sold for $350M and the variable cost of building each airplane is $300M. Assume that 70 aircraft will be sold each year for 5 years. Thus annual revenues are $24.5B and annual costs are $21B. Assume that revenues and costs occur at year-end with the first year of operating cash flows occurring on Dec 31, 2003. Lockheed-Martin's cost of capital is 10% and the NPV of the project is $3.268B. What is the IRR of the project?(Assume that there are no taxes.) Date Investments Revenues Costs Jan. 1, 2003 -$10B Dec. 31, 2003 $24.5B $21B Dec. 31, 2004 $24.5B $21B Dec. 31, 2005 $24.5B $21B Dec. 31, 2006 $24.5B $21B Dec. 31, 2007 $24.5B $21B A) 7.24% B) 8.50% C) 9.76% D) 10.50% E) 22.11%