Concentration Strategy

Knowledge Center

What is a Concentration Strategy? Meaning.

In a Concentration Strategy a firm directs all or most of its resources to a single market (for a single product, or for 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.

Note that a strategy of concentration still allows for a several different actions: the company can attempt to capture a big market share of the market it focuses on by:

1. Increasing present customer's rate of usage.
2. Attracting customers from its competitors.
3. Interesting non-users in its products or services.

Also called Penetration Strategy. The opposite of Diversification.

Discuss Forum about Concentration Strategy. Start a new topic Share your knowledge or ask a question   🔥 NEW Concentration Strategy Focuses on 1 Line of Business My definition is that a concentration strategy is the strategy in which an organization focuses on a single line of busi... 3   1 comments

Information Sources Various sources of information regarding Concentration Strategy. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Research Links Automatically jump to further useful sources regarding Concentration Strategy. News Videos Presentations Books Academic More

Compare with: Diversification  |  Economies of Scale  |  Competitive Advantage  |  Synergy  |  Working Capital  |  Penetration Pricing  |  Core Competence

Return to Management Hub: Marketing & Sales  |  Strategy & Innovation

More on Management  |  Return to Management Dictionary

This ends our Concentration Strategy summary and forum.