8.2.2
(2024 EXAMS ONLY) Bowman's Strategic Clock
Bowman's Strategic Clock
Bowman's Strategic Clock
Bowman’s strategic clock provides an alternative approach to positioning and suggests a range of methods a business can use to remain competitive.
Example of Bowman's strategic clock
Example of Bowman's strategic clock
- A supermarket may offer a range of value products, with limited customer service, and self-service checkouts, though may still be competitive if the price charged for products is perceived as low enough by customers;
- A supermarket may offer a range of high-quality products, with personal shopper services and staffed checkouts with bag packing staff, though with much higher prices, but may still remain competitive if the prices charged provide value when considering the benefits of shopping at this supermarket.
Difficulty of competing on both price and customer benefits
Difficulty of competing on both price and customer benefits
- Offering products with perceived high benefits but at a low price, or offering products with low perceived benefits at a high price, will not offer a realistic or viable position for a business to take; they are destined, ultimately, for failure.
Advantages of competitive advantage
Advantages of competitive advantage
- Competitive advantage can increase market share and sales revenue as customers are attracted to the business.
Disadvantages of competitive advantage
Disadvantages of competitive advantage
- Competitive advantage, if it cannot be protected, can be copied by competitors who want to share a business’s success, resulting in the competitive advantage no longer existing.
Positions in Bowman's Strategic Clock
Positions in Bowman's Strategic Clock
Bowman’s strategic clock offers businesses a range of positions:
Low price
Low price
- Low-price of “no-frills” is a viable position as customers who perceive a product to have very low perceived benefits will be willing to buy the product or service assuming it has a low price.
- Ryanair is an example of this positioning approach.
Hybrid
Hybrid
- Hybrid is a viable approach, especially for businesses seeking to gain market share, as customers are willing to buy a product or service for a low price if there are some perceived benefits.
- For example, Ikea offers high-quality products but advertises its competitive pricing.
Differentiation
Differentiation
- Differentiation as a viable position as customers who perceive a product to have high benefits will be willing to pay a higher price.
- For example, Waitrose offers perceived benefits and is able to charge higher prices as a result.
Influences on positioning strategy
Influences on positioning strategy
- A business must consider the business’ competences. If the business’ competencies are in offering high-quality products which offer benefit to customers, a position focussing on price may be challenging.
- A business must consider the presence and location of competitors as the position of a competitor may affect and influence the decisions made by a business trying to compete.
Stuck in the middle
Stuck in the middle
- Being stuck in the middle can be fatal to a business as customers seeking cost leadership will seek to purchase from a retailer focussed on cost leadership.
- Customers wishing to purchase differentiated products will purchase from a retailer offering differentiated goods; there is no middle ground for retailers or producers to occupy.
1What is Business?
1.1Understanding the Nature of Business
1.2Understanding Different Business Forms
1.3External Environments
2Managers, Leadership & Decision Making
2.1Understanding Management
2.2Understanding Management Decision Making
2.3Understanding Stakeholders
3Decision Making to Improve Marketing Performance
3.1Decision Making to Improve Marketing Performance
3.2Understanding Markets & Customers
3.3Market Segmentation, Targeting & Positioning
3.4Marketing Mix
3.4.1Marketing Mix
3.4.2Product Decisions
3.4.3Pricing Decisions & Price Skimming
3.4.4Pricing Decisions & Price Penetration
3.4.5A-A* (AO3/4) - Pricing & Competition
3.4.6Promotional Decisions
3.4.7Promotional Decisions 2
3.4.8Promotional Decisions 3
3.4.9Distribution Decisions
3.4.10Distribution Decisions 2
3.4.11Digital Marketing
3.4.12Evaluating Digital Marketing
3.4.13A-A* (AO3/4) - The Marketing Mix & Promotion
4Decision Making to Improve Operational Performance
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
5Decision Making to Improve Financial Performance
5.1Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profit
6Improving Human Resource Performance
6.1Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Organisational Design
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Analysing the Strategic Position of a Business
7.1Mission, Corporate Objectives, Strategy
7.2Financial Ratio Analysis
7.3Overall Performance
7.4Political & Legal Change
7.5Economic Change
7.6Social & Technological Environment
7.7Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction
8.1Choosing Areas of Competition
8.2Choosing How to Compete
9How to Pursue Strategies
9.1Change in Scale
9.2Assessing Innovation
9.3Assessing Internationalisation
9.4Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy
Jump to other topics
1What is Business?
1.1Understanding the Nature of Business
1.2Understanding Different Business Forms
1.3External Environments
2Managers, Leadership & Decision Making
2.1Understanding Management
2.2Understanding Management Decision Making
2.3Understanding Stakeholders
3Decision Making to Improve Marketing Performance
3.1Decision Making to Improve Marketing Performance
3.2Understanding Markets & Customers
3.3Market Segmentation, Targeting & Positioning
3.4Marketing Mix
3.4.1Marketing Mix
3.4.2Product Decisions
3.4.3Pricing Decisions & Price Skimming
3.4.4Pricing Decisions & Price Penetration
3.4.5A-A* (AO3/4) - Pricing & Competition
3.4.6Promotional Decisions
3.4.7Promotional Decisions 2
3.4.8Promotional Decisions 3
3.4.9Distribution Decisions
3.4.10Distribution Decisions 2
3.4.11Digital Marketing
3.4.12Evaluating Digital Marketing
3.4.13A-A* (AO3/4) - The Marketing Mix & Promotion
4Decision Making to Improve Operational Performance
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
5Decision Making to Improve Financial Performance
5.1Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profit
6Improving Human Resource Performance
6.1Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Organisational Design
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Analysing the Strategic Position of a Business
7.1Mission, Corporate Objectives, Strategy
7.2Financial Ratio Analysis
7.3Overall Performance
7.4Political & Legal Change
7.5Economic Change
7.6Social & Technological Environment
7.7Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction
8.1Choosing Areas of Competition
8.2Choosing How to Compete
9How to Pursue Strategies
9.1Change in Scale
9.2Assessing Innovation
9.3Assessing Internationalisation
9.4Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy
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