bowman's strategic clock

• bowman's strategic clock

  *shows different positioning strategies based on different combinations of price and perceived added value

  *shows which combinations are competitive and which aren't

  
• 1 - low price, low added value


  *only makes profit with massive sales volume

  *good to use economies of scale to reduce unit cost

  *likely to be inferior good (-ve elastic YED)
• 2 - low price


  *cost leadership (porter's strategic matrix)

  *normal good (+ve YED, 0-1)

  *high efficiency

  *make use of economies of scale
• 3 - hybrid


  *modest prices and relatively high perceived added value

  *good quality

  *decent prices

  *companies with loyal customer base will be successful
• 4 - differentiation


  *differentiation (porter's strategies)
• 5 - focused differentiation


  *differentiation focus (porter's strategies)
• 6 - increased price, standard value, 7 - increased price, low added value, 8- low added value, standard price


  *combine high price with fairly low perceived value

  *company will fail using these strategies, unless it has a monopoly