Which strategy targets a niche market with lower costs?

The focused cost-leadership strategy is designed to serve a specific niche market while maintaining lower costs than competitors within that same niche. This approach allows a company to meet the unique preferences and needs of a particular segment of customers by providing products or services at a reduced price point compared to alternatives. The strategy not only emphasizes cost efficiency but also ensures that the company's offerings are tailored to the specific desires of that niche market, enhancing customer satisfaction and loyalty.

By concentrating on a targeted segment, businesses can optimize their operations, reduce waste, and achieve economies of scale without spreading their resources too thin, which is often a challenge with broader strategies. This targeted focus allows them to compete effectively in their chosen market segment, making the focused cost-leadership strategy particularly effective for businesses looking to dominate a specific area while keeping costs down.