A focus strategy refers to concentrating on a specific market niche. Which option is correct?

• A. A focus strategy means focusing efforts on a broad market segment.
• B. A focus strategy means concentrating on a specific niche within the market.
• C. A focus strategy involves rapid diversification into unrelated products.
• D. A focus strategy requires franchising.

Answer: (B)

Concentrating on a specific market niche means directing efforts toward a narrow, clearly defined group of customers whose needs aren’t fully addressed by the broader market. This focus allows the business to tailor its products, services, and marketing to that group, aiming for a stronger value proposition than would be possible in a larger, undifferentiated market. The best choice captures this idea by describing attention to a distinct niche within the market, rather than trying to serve everyone or pursue unrelated diversification or franchising strategies.

For example, a company might specialize in high-end, single-origin coffee for discerning espresso bars, focusing all resources on that niche rather than broad coffee markets. The other options describe approaches that aren’t about narrowing the target audience: serving a broad market, branching into unrelated product lines, or using franchising as a growth method.