Focus Strategy: 3 Smart Directions MSMEs Must Choose in 2026

In 2026, business is tough. You now face three big enemies –  unpaid debts, smaller profits, and the hassle of handling too many products for too many customers. 

You might think doing “everything for everyone” keeps you safe, but this “mix-veg” approach hurts your profit.

The answer isn’t to work harder. It is to use a focus strategy. 

This means saying “No” to small, distracting profits to become the topper in one big niche. 

Let’s look at how doing less can make your business grow twice as fast by using a focus strategy.

What is a Focus Strategy in Business?

In terms of focus strategy in strategic management, this means ignoring the broader market to serve a specific segment better than anyone else. 

To understand the focus strategy in strategic management, think about two main approaches – 

• Cost Focus –  

You get rid of things the big market wants, but your specific group doesn’t need. This cuts costs significantly.

• Differentiation Focus –  

You give top-notch value that big companies can’t match, which lets you charge more.

In simple terms, it is directing your limited resources at one goal until you break through. 

Do you know? This lack of focus is a direct cause of inefficiency.  Indian MSMEs operate at just 18% of the productivity levels of large enterprises, a stark contrast to the 45-70% productivity ratio observed in OECD economies.

3 Directions You Can Choose to Focus

You can’t drive in three directions at once. 

You must choose one main path to apply the focus strategy in business: Customer, Problem, or Product. 

This choice will shape your sales and marketing plan. 

Let’s look at the types of focus strategies available to you.

Direction A –  Customer Focus (The “Who”)

This approach involves finding a specific group of people or companies and shaping the whole business system to serve them. 

You become the top expert in their world.

• Focus Strategy Example – 

GrowthPixel and Creafinity stopped working for everyone to focus on doctors. 

By learning about medical rules and how patients think, they now charge higher fees.

Direction B –  Problem Focus (The “What Need”)

This plan handles a specific tough issue in the market that regular competitors either skip or handle poorly. 

You don’t peddle a product. 

You eliminate a headache.

• Focus Strategy Example –  

Zerodha took on “High Trading Fees.” 

They got rid of branches to offer free trades, solving the cost issue better than anyone else.

Direction C –  Product Focus (The “What Solution”)

This approach centres on making one product or a small range of products with top-notch craftsmanship, tech or design. 

The goal is to become the world’s best at that specific thing.

• Focus Strategy Example –  

Sreenag Pictures chose to focus on architectural photography. 

This narrow focus helped him create a specialized portfolio that general photographers couldn’t match.

What Comes Next After Choosing Focus?

Once you select from the types of focus strategies, your leadership team must steer the company strictly.

A strategy is worthless without action. Declaring a focus means changing how you sell, market and hire. 

This is where you apply a focus strategy in marketing to increase your revenue.

Sales & Marketing Transformation

You need to stop the “Bad Revenue” by using a focus strategy in marketing.

• Change your message –  

Don’t say “Digital Marketing for Everyone.” 

Instead, say “We help orthopaedic clinics boost patient visits by 30%.”

• Strategic Change –  

Skip general “50% off” text blasts. Send specific messages like “Dr Sharma wants more knee replacement patients?”

• The Price of Doing Nothing Script –  

Teach sales to rule out leads. “We focus on X. For Y, call our associate.”

Team & Culture Shift

Implementing a focus strategy in business requires ending FOBI (Fear of Being Idle).

• Grind culture often hides waste –  

Follow the Mahindra motto, “Dream big, do less, nail the execution.”

• Value Through Limits –  

Don’t worry about narrowing your focus. Scarcity boosts value.

• Talent Density –  

Don’t hire people who can do many things. Hire experts who love your specific field.

Conclusion

In the end, a focus strategy takes guts. 

You need to take a hard look at what you’re doing, cut out things that don’t matter and get good at one thing. 

When considering focus strategy advantages and disadvantages, do not worry about a niche being too small. 

Worry about being average at everything.

By 2026, the market will push back against complicated stuff and favour clear ideas. 

It’s better to be an expert people trust than someone who knows a little about everything but isn’t taken seriously. 

Stop trying to do it all so you can get something done.

Ready to scale your business? Read more of our MSME growth blogs here.

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