Final answer:
A focus strategy is when a firm targets a specific buyer group, geographical market, or product segment, leveraging its strengths to gain a competitive advantage. This is often more successful than attempting to cater to a wide market and is related to the concepts of core competency and product differentiation.
Step-by-step explanation:
The strategy you're referring to is known as a focus strategy. This is when a firm decides to concentrate on a particular buyer group, geographical market, or product segment, tailoring its products or services to serve that specific area or audience better than competitors who aim to serve a broader market. This approach leverages the firm's strengths in a focused manner, potentially resulting in a competitive advantage. A focus strategy is related to the concept of core competency, where a business excels by concentrating on a limited scope of products or services. This is similar to product differentiation, where a firm seeks to distinguish its products in the minds of consumers from those of its competitors.