Using a focus strategy to achieve a cost breakthrough is a fairly common
technique. Budget-priced motel chains like Days Inn, Motel 6, and LaQuinta
have lowered their investment and operating cost per room by using a nofrills
approach and catering to price-conscious travelers. Discount stock
brokerage houses have lowered costs by focusing on customers mainly interested
in buy-sell transactions who are willing to forgo the investment
research, investment advice, and financial services offered by full-service
firms like Merrill Lynch. Pursuing a cost advantage via focusing works well
when a firm can find ways to lower costs by limiting its customer base to a
well-defined buyer segment.