Exercise – Bowman’s Strategy Clock

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.

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).

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.

Bowman's Strategy Clock

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.