What strategy is often employed to reduce operating costs and improve company focus?

Outsourcing is a strategy commonly employed by companies to reduce operating costs and enhance their focus on core business activities. When a company outsources functions or services, it can often achieve cost savings by leveraging specialized firms that can perform those functions more efficiently and at a lower cost due to economies of scale and expertise. This allows the company to concentrate its resources and efforts on its primary business objectives and areas of competitive advantage, thus improving overall performance.

Additionally, by using outsourcing, companies can often access advanced technologies and skills that may not be available in-house, further streamlining operations and reducing expenses. Outsourcing can support flexibility in operations as well, allowing organizations to adjust more quickly to changing market demands without the burden of maintaining all operations internally.

While vertical integration, in-house manufacturing, and market expansion can also contribute to a company's strategy, they do not inherently focus on reducing costs through external partnerships in the same way that outsourcing does. Vertical integration often involves increased operational complexity and investment in internal capabilities, while in-house manufacturing may lead to higher overhead costs. Market expansion typically requires additional resources and investment, which does not directly prioritize cost reduction.