Bowman's Strategy Clock
From Wikipedia, the free encyclopedia
Bowman's Strategy Clock is a model used in marketing to analyse the competitive position of a company in comparison to the offerings of competitors. It was developed by Cliff Bowman and David Faulkner[1] as an elaboration of the three Porter generic strategies. As with Porter's Generic Strategies, Bowman considers competitive advantage in relation to cost advantage or differentiation advantage. Bowman's Strategy Clock represents eight possible strategies in four quadrants defined by the axes of price and perceived added value. The resulting star shape is reminiscent of a clock face, giving this tool its name.
There are six core strategic options:
| Value \ Price | Low price | Medium price | High price |
|---|---|---|---|
| High added value | Hybrid Low cost base and reinvestment in low price and differentiation |
Differentiation Perceived added value by user, yielding market share benefits or allowing price premium |
Focused differentiation Perceived added value to a particular segment warranting a premium price |
| Mediocre added value | Cost leader | \ | / -- * -- / | \ |
Raise prices to get higher margins. Works in de facto industry standard position. Risk losing market share to competitors. |
| Low added value | Segment specific | Increased price & low value Risks losing market share; only feasible in monopoly position. | |
References
- ↑ Bowman, C. and Faulkner, D. (1997), “Competitive and Corporate Strategy”, Irwin, London.
This article is issued from Wikipedia. The text is available under the Creative Commons Attribution/Share Alike; additional terms may apply for the media files.