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Corporate-Level Strategy: Focus on a Single Industry

Instructor: Sean Kennedy

Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing.

Focusing on a single industry is essential to a new company or a company that needs to improve its performance. In this lesson, we will discuss the benefits of focusing on a single industry.

What is a Corporate-Level Strategy

There are many avenues a company can go down when developing a business. A corporate-level strategy is when a business makes a decision that affects the whole company. A corporate-level strategy affects a company's finances, management, human resources, and where the products are sold. The purpose of a corporate-level strategy is to maximize its profitability and maintain its financial success in the future. A corporate-level strategy is utilized to help increase competitive advantage over its competitors and to continue to offer a unique product or service to consumers.

Focusing On A Single Industry

Focusing on a single industry is when a company focuses its resources on one business. When a new business emerges, this is the strategy most companies use. As a business begins to grow and develop, it is essential to concentrate on making the finances, human resources, management, products, and technology all strong in its industry. When a company first starts, they should stick to what they know and solely concentrate on making the business strong by focusing their strategy on the one industry they are operating in. With this strategy, a company has an opportunity to invest all of its time and energy into a single industry and help develop it to be a success, rather than focusing some of its time on multiple projects.

For instance, you just opened three sandwich shops because you had prior experience working in a deli. You have a large amount of competitors in the area. You decide you want to expand your business into having pastries. The only problem is you don't have experience baking. As a result, it would be essential to focus on creating the best sandwiches and stick to concentrating on what you know. By adding a new element that is not familiar, it could cause problems and take away money from the business. If you do something well, you should stick to it!

Reducing The Size Of An Organization

Concentrating on a single industry is a beneficial strategy when managers see the need to reduce the size of their organization to improve performance. By focusing on one area that the company is strong in creating, it can make that product even stronger. If a company has too many industries it is operating in, the company could lose focus on some of the products that have made them financially successful. By focusing on a single industry, it allows the company to allocate resources to one area. Although they may have had a failure in other industries, they can get back to the basics and help get the company out of financial debt by focusing on their original product.

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