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Concentration Strategy |
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Description of Concentration Strategy. Explanation. |
Definition Concentration Strategy. Description.
In a Concentration Strategy a firm directs all or most of its resources a single market (to a single product, or a single technology). In this strategy, a company chooses to pursue a large share of one or a few submarkets rather than chasing a small share of a large market. An inherent risk belonging to this strategy occurs when the demand in the submarket suddenly drops or if a strong competitor enters the same submarket.
Also called Penetration Strategy. The opposite of Diversification.
Compare with: Diversification | Economies of Scale | Competitive Advantage | Synergy | Working Capital | Penetration Pricing | Core Competence |
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End of description Concentration Strategy. An explanation. |
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