Cost focus is a business strategy where a company aims to become the lowest-cost producer in a specific market segment. By concentrating on a niche, the company can reduce expenses through efficient operations, economies of scale, and cost-effective sourcing. This allows them to offer competitive prices to attract price-sensitive customers. Companies employing a cost focus strategy often streamline their processes and minimize overhead costs. They may also target specific customer groups, such as budget-conscious consumers or small businesses, to maximize their market share within that segment. This approach can lead to increased profitability while maintaining a strong competitive edge.