Bowman's Strategy Clock
The Strategy Clock: Bowman's Competitive Strategy Options
Firstly here's a recap of the various options from Bowman's Strategy Clock. The exercise is at the bottom of this page.
Option one - low price/low added value
- likely to be segment specific.
Option two - low price
- risk of price war and low margins/need to be a 'cost leader'.
Option three - hybrid
- low cost base and reinvestment in low price and differentiation.
Option four - differentiation
(a)without a price premium:
- perceived added value by user, yielding market share benefits.
(b)with a price premium:
- perceived added value sufficient to to bear price premium.
Option five - focussed differentiation
- perceived added value to a 'particular segment' warranting a premium price.
Option six - increased price/standard
- higher margins if competitors do not value follow/risk of losing market share.
Option seven - increased price/low values
- only feasible in a monopoly situation.
Option eight - low value/standard price
- loss of market share.
Place the following competitive offerings onto the Strategy Clock:
- New Zealand Lamb
- A standard domestic 40 watt light bulb
- A Colored 40 Watt light bulb
- Per per view TV
- Hyundai Autos
- First Class fights on United Airlines
- A standard paper clip
- SAGA holiday (for the over fifties).
