Bowman’s Strategy Clock

• Lesson
• Exercise
• Answer

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.

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.