Business planning &strategy- Bowman's strategic clock 0.0 / 5 ? Business StudiesBusiness PlansA2/A-levelCCEA Created by: Football03Created on: 23-03-22 20:23 What is the purpose of the clock? To illustrate that a business will have a variety of options of how to position a product based on 2 dimensions (price&perceived value) 1 of 9 What is position 1 ? Low price and low value added -not differentiated -bargain basement strategy e.g Poundland 2 of 9 What is position 2? Low price -Low-cost leaders in market -Economies of scale -Profit margins are low(unless high volume of sale) -Competitive market (Tesco) 3 of 9 What is position 3? Hybrid -Low price, some product differentiation -'Perceived added value' 4 of 9 What is position 4? Differentiation -High level of perceived added value -High quality/lots of branding -Customer loyalty 5 of 9 What is position 5? Focussed differentiation -Highest price levels -High perceived value -Luxury brands (Gucci) -High profit margins 6 of 9 What is position 6? Risky high margins -High risk -No 'extra added value' -Uncompetitive strategy 7 of 9 What is position 7? Monopoly pricing -Monopoly in the market -Not concerned about 'added value' (only business supplying the product/service) -No alternatives 8 of 9 What is position 8? Loss of Market share -standard price for low valued product -scammish -no customers 9 of 9
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