Which strategy aims at achieving high specialization while keeping costs low?

The focus strategy is designed to achieve high specialization by targeting a specific market segment or niche while effectively managing costs. This approach allows a business to tailor its products or services to the unique needs of that particular segment, leading to a deep understanding of customer preferences and the ability to deliver highly relevant offerings.

By concentrating on a narrow market focus, organizations can streamline their operations and enhance efficiencies, thereby keeping their costs low. This strategy contrasts with broader strategies like differentiation or cost leadership, which may not allow for the same level of specialized service or attention to a specific segment.

Furthermore, the focus strategy enables businesses to build strong brand loyalty among their target customers, as their offerings are closely aligned with customer desires and needs. This can lead to a competitive advantage in that niche, allowing the company to achieve both specialization and cost efficiency simultaneously.