- A focus strategy involves concentrating resources on a narrowly defined market segment or niche. The firm aims to build a strong competitive advantage by focusing on the specialized needs of that niche. - By focusing on a niche, businesses can compete through low costs, differentiation, or rapid response against larger competitors. The objective is to better serve niche buyers than rivals. - Choosing a niche where needs are not met and developing expertise in it is key to success with a focus strategy. Examples include Family Dollar targeting low-income families and Ferrari/Rolls-Royce focusing on luxury cars.