Bowman's Strategy Clock
The Strategy Clock: Bowman's Competitive Strategy Options
The 'Strategy Clock' is based upon the work of Cliff Bowman (see C. Bowman and D. Faulkner 'Competitve and Corporate Strategy - Irwin - 1996). It's another suitable way to analyze a company's competitive position in comparison to the offerings of competitors. As with Porter's Generic Strategies, Bowman considers competitive advantage in relation to cost advantage or differentiation advantage. There are six core strategic options:
Option one - low price/low added value.
likely to be segment specific.
Option two - low price.
risk of price war and low margins/need to be a 'cost leader'.
Option three - Hybrid.
low cost base and reinvestment in low price and differentiation.
Option four - Differentiation.
(a)without a price premium:
perceived added value by user, yielding market share benefits.
(b)with a price premium:
perceived added value sufficient to to bear price premium.
Option five - focussed differentiation.
perceived added value to a 'particular segment' warranting a premium price.
Option six - increased price/standard.
higher margins if competitors do not value follow/risk of losing market share.
Option seven - increased price/low values.
only feasible in a monopoly situation.
Option eight - low value/standard price.
loss of market share.
Shell Directional Policy Matrix A Nine Celled directional Policy Matrix The Shell Directional Policy Matrix is another refinement upon the Boston Matrix. Along the horizontal axis are prospects for sector profitability, and along the vertical axis is a company's competitive capability. As with the GE Business Screen the location of a Strategic Business Unit (SBU) in any cell of the matrix implies different strategic decisions. However decisions often span options and in practice the zones are an irregular shape and do not tend to be accommodated by box shapes. Instead they blend into each other. Each of the zones is described as follows: Leader - major resources are focused upon the SBU. Try harder - could be vulnerable over a longer period of time, but fine for now. Double or quit - gamble on potential major SBU's for the future. Growth - grow the market by focusing just enough resources here. Custodial - just like a cash cow, milk it and do not commit any more resourc...
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