Final answer:
The focus of a top-line strategy is on increasing revenue, while a bottom-line strategy emphasizes improving net income by reducing costs and increasing efficiency. Businesses that concentrate on their core competencies often employ a successful bottom-line approach to maximize profitability.
Step-by-step explanation:
To explain the difference in focus for a bottom-line strategy and a top-line strategy, it is essential to understand that these strategies refer to different aspects of a business's financial performance and approach to growth. A top-line strategy emphasizes increasing revenue or sales figures—what appears at the top of the income statement. This can involve expanding into new markets, increasing market share, or launching new products. By contrast, a bottom-line strategy concentrates on improving the company’s net income, which is the bottom figure on an income statement. This can involve cost reduction, enhancing operational efficiency, or pursuing economies of scale.
In the context of business strategy, companies focusing on "core competency" typically aim for a streamlined approach, often aligning with a bottom-line strategy where they prioritize profitability by concentrating on areas of strength and expertise. This narrowed focus can be more successful than firms that over-diversify and lose sight of efficiency and specialization.