This strategy would avoid direct competition with larger firms who are pursuing bigger segments.This strategy is also known as ‘concentrated strategy’.Tags: Good Words For EssaysApa Format For Term PaperThe Essays Of Arthur Schopenhauer The Art Of ControversySocial Research PapersCollege Conclusions For An EssayCan You Start A Essay With A QuoteEssay On David Milgaard
Nike produces shoes for golfers, tennis players, basketball players, for cricketers, and thus serves many segments relating to sports shoes.
Chicago-based Hyatt Hotels and Resorts has targeted the gay, lesbian, bisexual and transgender market to make its image more attractive to this market.
Such a small segment is normally ignored by large competitors, using mass market or large segment strategies.
Even businesses with multi-segment strategy may feel ineffective to focus on such a small segment.
For example one-hour photo has lost to digital photo camera, fax servicing has lost to e-mail, pager has lost to mobile phones, and STD booths have lost due to cheaper telecom services.
Single market segment strategy can also be called as ‘concentrated targeting strategy or ‘niche’ strategy.
Should the chosen segment cease to be viable the firm would also cease to operate.
Putting all the eggs into one basket can be hazardous.
For example in case of a power supplier, the segments may include domestic users, government users, commercial establishments, factories, occasional users, etc.
The power supplier would serve all the segments at the same time.