What is Bowman’s Strategy Clock? 8 Positions Explained

Bowman’s Strategy Clock is a tool with several different methods to conquer a market. It helps map market positions based on price and how much value people think something is worth.

Bowman’s Strategy Clock is a smart and easy-to-use tool that gives you different ways to position your business in the market based on price and value. Bowman (1997) proposed Strategic Clock Model or SCM, which offers even more options than Porter’s Competitive Strategy. In his view, Competitive Strategy may fit into the following categories: Cost Leadership, Differentiation, Hybrid, Focused Differentiation, Segment Specific etc.

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. A product that’s perfect for those times when you’re trying to determine if an acquisition makes sense. This is a perfect tool for those times when you need to evaluate a competitor or just the viability of your position.

bowman strategy
Strategy Clock Model

What do the numbers on Bowman’s Strategy Clock mean?

There are eight 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. Due to this combination, it is the least competitive location on the Strategy Clock.

By focusing on price-sensitive consumers, a company may cater to the market by reducing the value of the product (or service), such as the less expensive geriatric cell phones designed for older individuals with fewer features.

Position 2) Low Cost

It is also known as the cost-leadership strategy. The Cost Leadership theory of Porter exemplified the strategy. The decision to pursue cost leadership necessitates the identification and exploitation of advantageous resources, as well as the sale of standardised, unadorned goods, to pursue production scale and economies of scale-related success. For capturing competitive advantages, Cost Leadership possesses two fundamental characteristics: First, market positioning that targets the mass market; Second, in a fiercely competitive market, companies that adopt a cost leadership strategy will attract more customers with a pricing mechanism (lower price) that does not result in a loss of profit.

Position 3) Hybrid

A hybrid position, or value-for-money strategy, indicates that consumers enjoy products or services with added value that are also inexpensive. The strategy promotes the belief that consumers are not required to pay a premium for superior quality. It is extremely attractive to consumers. However, we are aware that providing customers with high-quality products or services necessitates the company’s ability to conduct thorough research on customer needs and transform the findings into high-quality products, which will generally result in higher costs.

The optimal state depicted by the strategy, balancing costs, prices, and the development of new products, is without a doubt a challenge for many companies. A hybrid strategy is a great choice when a company can find ways to cut costs without sacrificing value or when it can cut costs related to economies of scale by increasing sales in a market with a lot of customers.

Position 4) Differentiation

The choice requires businesses to provide a high level of perceived value to customers. Companies can set their products apart from those of their rivals through differentiation, which results in increased sales. The fundamental tenet of differentiation is that the market’s consumer needs are diverse and cannot be satisfied by a single standard set of goods.

In order to gain a larger share of the market and more money, businesses provide better products or services at a price that is higher than their rivals.

Position 5) Differentiation with a Purpose

Focused Differentiation is about offering high value at a premium price (instead of Porter’s Generic Strategy, which is about going for a specialized market). When appropriately executed, this approach yields significant profits but is difficult to sustain — an example of this technique is the introduction of the iPhone and following early growth.

Position 6) High-Risk Margin

Any plan with the word “risky” should 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 end; therefore, these businesses must continue monitoring their external variables.

Position 8) Market Share Decrease

This is the most dangerous position 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.


Cliff Bowman hypothesised that companies can assess the strategic positioning of their brand in the market and their competitors’ position based on price and perceived customer value. There are eight possible classified positions on Bowman’s Clock for analysing the position of the company’s products.

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