Single-segment Strategy:

A single-segment strategy is called a concentration strategy because it means selection of one segment as the target from the total market. Here a company wants to concentrate only on one single market but not on the whole market.

The company's marketing mix is directed at one segment of the total market.

Advantages

• A seller will penetrate a market in depth
• The seller will acquire a reputation for a specialist or an expert in the limited market.
• Limited resources can be used to imitate a single-segment strategy.
• Large competitors are likely to leave it alone if it remains small. If it becomes big, then the large competitors will come in

Limitations

• The drawbacks of a single-segment strategy include the following risks and limitations:-
• The seller puts all his/her eggs in one basket. If the market declines the seller will suffer heavy losses
• A seller with a strong name and reputation in one market-segment will sometimes fail to expand into another market-segment.