Which statement regarding Porter's focus strategy is correct?

Porter's focus strategy centers on targeting a specific market segment, allowing a company to tailor its offerings to meet the unique needs of that niche. This strategy can manifest in two principal ways: cost focus and differentiation focus.

When a company adopts a cost focus approach, it seeks to provide goods or services at a lower cost than competitors within a targeted market segment. This allows the business to attract price-sensitive customers who prioritize affordability.

In contrast, a differentiation focus strategy involves offering unique products or services that stand out in the eyes of the target market. This could include superior quality, unique features, or exceptional customer service, aiming to meet the specific preferences of a particular group of customers.

Therefore, the statement that includes both providing goods at lower cost and a differentiated product is correct. It accurately reflects the flexibility of Porter's focus strategy, indicating that businesses may choose to either pursue a cost leadership approach or a differentiation approach, depending on their strategic objectives within the chosen market segment. Thus, the encompassing nature of the correct answer highlights that focus strategies can indeed incorporate elements of both cost and differentiation, catering to different segments of the market effectively.