helen mba _2 - Nelson Mandela Metropolitan University

& Scholes, 2002:325-326).The long-term effectiveness of the differentiation strategy depends on how easilycompetitors can imitate the unique benefits.As soon as most or all competitors imitate the offering, it is no longer an effectivemeans of differentiation (Hellriegel et al, 2001:93).2.7.1.5 Focused differentiation –route fiveJohnson and Scholes (2002:328) define a focused differentiation strategy as one thatseeks to provide high perceived value, justifying a substantial price premium. Asuccessful focus strategy depends on an industry segment that is of sufficient size,has good growth potential, and is not crucial to the success of other competitors.Mid-size and large firms effectively pursue focus-based strategies only in conjunctionwith differentiation or cost leadership-based strategies. Focus strategies are mosteffective when consumers have specific preferences or requirements, and when rivalfirms are not attempting to specialise in the same target segment (David, 2001:182).Johnson and Scholes (2002:328) stress that this strategy raises some importantissues:• A choice has to be made between broad differentiation across a market, or astrategy focused on a specific segment.• Organisations choosing a focus strategy targeting a particular marketsegment, have to realise that, within that segment itself, the strategy clock isalso relevant.• It is important to be clear about which market segment is being targeted,defined in terms of customer needs and actions to satisfy those needs. This is75