A focus strategy serves the needs of which market segment?

• A. The broad market
• B. A niche segment that is the same across all industries
• C. A particular competitive segment
• D. Only luxury customers

Answer: (C)

A focus strategy targets a specific, defined market segment—the particular group of customers with distinct needs within the broader market. The aim is to tailor offerings and concentrate resources so that the needs of that segment are met more effectively than competitors who target a wider audience. That’s why the best description is serving a particular competitive segment.

The broad market is outside the focus strategy because it aims to reach many customers rather than a narrow group. The idea of a niche that’s the same across all industries isn’t accurate, since niches vary by market and company, not a universal standard. And focusing only on luxury customers is too limiting—the segment could be any clearly identified group (not just luxury), as long as it’s defined and targeted.