4.8 • +11k Ratings
Save
Print
Edit
You have already viewed an explanation
Register now and access this and thousands of further explanations for free
How do businesses effectively position their products? One way to do this is by using Bowman's Strategic Clock. Bowman's theory includes a clock-shaped model which consists of eight different positions. Let's take a look.
Bowman’s Strategic Clock is a strategic tool that designs a marketing strategy to analyse a company’s competitive position.
It aims to help with determining how a product should be positioned to give it the most competitive position in the market. It consists of eight positions across the clock indicating a different market strategy. It was invented by Cliff Bowman and David Faulkner and first published in 1997 in a paper called “Competitive and Corporate Strategy”.
Firstly, you should think about the two dimensions: value and price of a product or service. These method will guide you and help you to arrive at one of eight positions on the clock. See Figure 1 below.
Figure 1. Bowman’s Strategic Clock, StudySmarter
In this strategy, the price and value of a product or service is very low. It is probably the least competitive strategy in Bowman’s Strategic Clock.
Poundland sells low-valued products at very low prices, usually at £1 or less.
This strategy is about providing customers with a product or service at the price lower than the price of the competition. Usually, businesses using this strategy focus not on quality, but on quantity. They aim to minimise the production costs in order to sell as many units as possible at the lowest price.
Ryanair provides customers with flights which are theoretically a high-valued service. However, Ryanair cuts all the possible costs in order to offer the lowest price.
This strategy combines low price and product differentiation. Companies using this strategy aim to make their product or service highly valued in the market and in the eyes of their customers. However, the price of the product is low and therefore highly competitive.
Ikea offers a variety of highly valued products at reasonable prices.
Companies following this strategy try to make their product or service different from the products offered by their competition. Typically they offer the same product or service, but with some unique features.
Adidas offers products that are the same as their competitors (sports clothing, shoes and accessories). However, their products are unique as they have a different, specific design which is not offered by any of the competitors.
This strategy combines high value and high price. Here companies produce distinguished and high valued products or services and sell them at the highest price possible. Businesses using this strategy usually make high profits, but they have to put in a lot of effort to make it work successfully.
Chanel offers highly valued and distinguished products. Their products are high-priced and their customers are willing to pay much more than their competitors.
This strategy combines high price and low value. Here companies offer a low valued product or service, but sell it at the highest price possible. It is a fairly risky strategy that is usually used by businesses with a strong brand name.
Some gyms tend to offer expensive membership even though they do not offer much more than their competitors.
In this market, there is only one business which controls a product or service and its price. There is no competition, but companies using monopoly pricing should keep an eye on the market since all monopolies come to an end.
Microsoft offers a service that is the only option for customers looking for an operating system.
This is a strategy for companies exiting a market or being in decline. It is used when companies lose their customers, become less profitable and therefore are forced to lower the prices of their products.
Blackberry used to offer smartphones, but unfortunately, other smartphone producers defeated the company and as result, Blackberry lost its market share.
| Advantages | Disadvantages |
| It is simple and comprehensive. | Its strategies can be blurred. |
| It offers a variety of starting points to examine strategy. | It tends to be focused on competitive marketplaces. |
Bowman’s Strategic Clock is a strategic tool that designs a marketing strategy to analyse a company’s competitive position.
It examines the value and price of a product or service and determines an appropriate strategy.
There are eight positions on the clock: low price and value added, low price, hybrid, differentiation, focused differentiation, risky high margins, monopoly pricing, loss of market share.
Bowman’s Strategic Clock tends to be focused on competitive market places and blurry the strategies.
You should think about the value and price of a product or service and determine an appropriate strategy on the clock.
It was invented by Cliff Bowman and David Faulkner.
It was first published in 1997.
It is used to design a marketing strategy to analyze a company’s competitive position.
Be perfectly prepared on time with an individual plan.
Test your knowledge with gamified quizzes.
Create and find flashcards in record time.
Create beautiful notes faster than ever before.
Have all your study materials in one place.
Upload unlimited documents and save them online.
Identify your study strength and weaknesses.
Set individual study goals and earn points reaching them.
Stop procrastinating with our study reminders.
Earn points, unlock badges and level up while studying.
Create flashcards in notes completely automatically.
Create the most beautiful study materials using our templates.
Sign up to highlight and take notes. It’s 100% free.
