QPractice question
Which of the following best describes Focus Strategy?
  1. A.Michael Porter's framework for analyzing industry attractiveness across five competitive forces — rivalry, suppliers, buyers, new entrants, and substitutes.
  2. B.A 2x2 grid of internal Strengths and Weaknesses crossed with external Opportunities and Threats — used to frame strategic options before recommending action.
  3. C.Concentrating on a narrow segment — geography, customer type, or product line — and applying cost or differentiation within it. ✓
  4. D.Concentrating on a narrow segment — geography, customer type, or product line — and applying cost or differentiation within it.
Why this answer:

Focus Strategy is concentrating on a narrow segment — geography, customer type, or product line — and applying cost or differentiation within it. The other options describe related but distinct concepts in Strategic Frameworks — see the deep-dive guide for the full distinction.

How to think about questions like this

Specialists often beat generalists in their chosen niche. Questions like this test whether you can distinguish Focus Strategy from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.

When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Focus Strategy for a worked example you can adapt to your assignment.