Swift Business Blog

In regard to individuals, the negative effects that the current crisis can be generated is the loss of his job and a solution is being implemented is the creation of self-employment, i.e that the employee becomes in self-employed person, who assembles his own business. One of the difficulties and risks that always accompany the creation and management of a company, in the current crisis is compounded by lack of availability of financial funds to make the necessary investments.

It would therefore be advisable to undertake business that does not require expensive equipment or large installations. Businesses aimed at small segments of the market could be an option and that is what is called “Concentration Strategy.” Is to detect a small group of population (age group, a small geographic area …) and offer a product very well suited to their needs and requirements and that no other company has offered so far.

The range of services, more labor intensive and therefore less in need of large investments, could be an area where such a strategy of concentration.

Companies that opt for the concentration usually achieve further differentiation of its product, i.e. the customers who go also perceive it as different and more appropriate for them, but only recognize a portion of the population, not the whole as in the case of differentiation. But the merger also could achieve lower costs than other competitors whose market is the whole goal, for example, attending a nearby market from the geographical point of view can avoid the cost of transportation of a competitor whose market potential throughout the country and away from some of its customers.