Bowman's Strategy Clock

Bowman’s Strategy Clock

Making Sense of Eight Competitive Positions

Bowman's Strategy Clock is a very useful model to help you understand how companies compete in the marketplace. By looking at the different combinations of price and perceived value, you can begin to choose a position of competitive advantage that makes sense for you and your organization's competencies. This is a powerful way of looking at how to establish and sustain a competitive position in a market driven economy. By understanding these eight basic strategic positions, you can analyze and evaluate your current strategy and determine if adjustments might improve your overall competitive position.

Position 1: Low Price/Low Value

Firms do not usually choose to compete in this category. This is the "bargain basement" bin and not a lot of companies want to be in this position. Rather it's a position they find themselves forced to compete in because their product lacks differentiated value. The only way to "make it" here is through cost effectively selling volume, and by continually attracting new customers. You won't be winning any customer loyalty contests, but you may be able to sustain yourself as long as you stay one step ahead of the consumer (we're not going to mention any names here!) Products are inferior but the prices are attractive enough to convince consumers to try them once.

Position 2: Low Price

Companies competing in this category are the low cost leaders. These are the companies that drive prices down to bare minimums, and they balance very low margins with very high volume. If low cost leaders have large enough volume or strong strategic reasons for their position, they can sustain this approach and become a powerful force in the market. If they don't, they can trigger price wars that only benefit consumers, as the prices are unsustainable over anything but the shortest of terms. Walmart is a key example of a low price competitor that persuades suppliers to enter the low...