Targeting and specialisation
There are two ways to specialise: firstly, by focusing on a specific segment of demand through targeting and delivering more customer PUV than less focused rivals; secondly, through product specialisation where you focus on a limited range of products and sell them as widely as possible. Targeting is dependent on there being different types of customers with different needs. The firm needs to be keenly aware of the requirements of the segment that it serves and sensitive to often subtle changes in those requirements. This is important to manage down the risk associated with serving a narrow slice of the market.
De-risking the pursuit of targeting and specialisation is brought about through securing ...