Question

Identify an organization that you believe utilizes a Focused Differentiation strategy. Is that organization successful in its implementation of its strategy? Why or why not?

Answer 1

FOCUSED DIFFERENTIATION STRATEGY:

A focused differentiation strategy means targeting a small group of customers with differentiated products.

Organisation which utilises focused differentiation strategy:

TOMS

Founded in 2006, this shoe company is popular for its excellence in corporate social and environmental stewardship. The company adopts the “One for One” principle, “With every product you purchase, TOMS will help a person in need.” To date, TOMS has provided over 10 million pairs of shoes in over 60 countries, restored sight for 200,000 people in over 5 countries. TOMS has recently initiated a water project to provide clean water for communities in need.

Organisation is successful in implementation of its strategy :-

TOMS’s shoe was a brainchild of Blake Mycoskie. He established the company in 2006 with the aim of donating one pair of shoes to a poor child elsewhere for every pair of shoes sold by his company.

The critical element in TOMS Shoes competitive strategy lies in the Company’s unique and standard service that regularly attracts customers and partner organizations.
Through this strategy, the Company has become popular and has gained favor from the government, key sponsors, and celebrities who have come forward to support its business.

This-strategy helps company to counter the impacts of competition within a market as well as increase customers’ confidence.
The role of this strategy is that they place the TOMS Shoes in such a way that it moves in the right direction and achieve the desired target. The Company aims to help the kids who are less privileged through shoe donation. As a result, it has directed its efforts in selling more shoes to help as many children as possible. This strategy help in building the Company’s image in the market as well as attracting worth sponsors for the corporate social project of donating shoes to the needy.This strategy help in creating efficient operations so that TOMS Shoes can attain efficiency in their production. TOMS Shoes have expanded their services to several countries across the world. The donation operations in different countries have also enabled the Company to gain popularity as well as increase productivity and increase sales. The human resource strategies offer a better working environment and conditions to encourage employees and other stakeholders for better performances. The CEO boasts of his team because they can help him lead even in his absence. This is only attainable by proper management and treatment of employees. When the human resources are satisfied, the focus is directed towards achieving goals and objectives.

Conclusion:

A focused differentiation strategy provides unique features that fulfil the demands of a narrow segment of market. Some firms using a focused differentiation strategy use the efforts on a particular sales channel, such as selling products online only. Others target specific demographic niches.