What does concentration strategy focus on?

A concentration strategy primarily emphasizes narrowing a company's attention to competing within a single industry or specific market segment. This approach involves focusing resources and efforts on developing a strong position within that particular area, allowing the business to build expertise, brand loyalty, and market share. By concentrating on a single industry, a company can tailor its strategies, marketing, and product offerings to best meet the needs and preferences of its target customers.

This focused approach often leads to a more efficient allocation of resources, as the business can streamline operations and create specialized products or services that resonate with its audience. It enables firms to gain a competitive edge by deeply understanding the market dynamics and consumer behaviors, ultimately enhancing their ability to compete effectively.

In contrast, other strategies, such as expanding into unrelated markets or diversifying product lines, would require the company to spread its resources thinner and possibly dilute its expertise in the primary market. Enhancing brand visibility could be a part of a broader strategy but doesn't directly relate to the focus that concentration strategy entails. Thus, competing in a single industry remains central to the definition of a concentration strategy, making it the correct answer.