Bowman’s Strategy Clock is a great tool with several different methods to conquer a market. Bowman’s Strategy Clock is a complete tool for mapping out market positions based on pricing and perceived value. Bowman’s Strategy Clock is a sophisticated and simple-to-use strategy tool that gives you a variety of alternatives for market positioning depending on terms of price value. It’s frequently used in conjunction with tools like the Ansoff Matrix, and it may be thought of as a complement to Porter’s Generic Strategies.
What do the numbers on Bowman’s Strategy Clock mean?
There are 8 places around the clock, each emphasizing a distinct approach to commercial success.
Position 1) Low-cost and low-value-added
The goal of this technique is to sell a large number of items. The value of the items or services is low, and the price point is as low as feasible. It is the least competitive location on the Strategy Clock as a result of this combination.
Position 2) Low Cost
Low Price is a technique for being the cheapest choice for customers in the marketplace, as the name indicates. Because it’s a strategy with low margins, process efficiency and cost reduction are critical to its success. With this technique, you’re looking for high volume levels; otherwise, you’ll wind up with poor sales and cheap prices, which is a recipe for disaster.
Position 3) Hybrid
The Hybrid stance straddles the line between cheap cost and distinctiveness. It’s all about making sure the pricing is competitive, preferably with a low perceived price from customers, while advertising the product’s added value.
The hybrid strategy’s success hinges on striking a balance between cost and distinctiveness, aiming to maximize both while retaining healthy profits.
Position 4) Differentiation
Differentiation strategy refers to a company’s efforts to set itself apart from rivals by providing high perceived value to its products or services. This approach covers a broad range of topics, from complete product variety to distinct features inside the main product.
Position 5) Differentiation with a Purpose
Focused Differentiation is about offering high value at a premium price (as opposed to Porter’s Generic Strategy, which is about going for a specialized market). This approach, when executed properly, yields significant profits but is difficult to sustain — an example of this technique is the iPhone introduction and following early growth.
Position 6) High-Risk Margin
Any plan with the word “risky” in it should, of course, imply that you are entirely aware of your alternatives before embarking on it. The major goal of this strategy is to enter the market at a high price point with little apparent additional value.
You’re relying on a strong brand to execute this approach since customers are more likely to pay extra for a well-known brand with strong emotional attachments than for a lesser-known brand.
Position 7) Pricing Monopoly
Because a single firm controls the product and pricing in monopoly marketplaces, other factors such as price points, value, and rivals have less of an impact. Of course, all monopolies eventually come to an end, therefore these businesses must continue to monitor their external variables.
Position 8) Market Share Decrease
This is the most dangerous position to be in since it indicates that the firm is departing from the market or declining. It’s possible that they selected this technique as part of a shift to additional markets, or that it was imposed upon them as a result of inappropriate pricing or market fit.
Advantage of Bowman’s Strategy Clock
Some advantages of using Bowman’s Strategy Clock are:
- Bowman’s strategy is more versatile and wide than the two general strategies, that are more constrained and limiting in terms of strategic orientation for businesses.
- Bowman’s Strategy Clock is easy to decipher and comprehend.
- Bowman’s Plan Clock offers several beginning points for developing a strategy.
- Compared to other options, Bowman’s Strategy Clock is more useful and complete.
Disadvantage of Bowman’s Strategy Clock
- Bowman’s method ignores companies that are in many strategic positions.
- In between clock hands, the lines might be distorted.
- It tends to be extremely focused on competitive marketplaces as a paradigm.
Which three positions on Bowman’s strategic clock are considered uncompetitive?
Three of the slots (6, 7, and 8) are vacant. 8) They aren’t competitive. These are the ones where cost is a factor
higher than the perceived worth, Assuming that the market is in good shape. When it comes to functioning in a competitive environment, there will always be rivals. As provided a greater perceived value at the same price, or for the same length of time for a lesser financial quality price.