Bowman’s Strategy Clock is a significant inclusive way and useful tool that helps to map out all the positions existing within the marketplace focused on perceived value and price. Bowman’s Strategy Clock is a useful strategy that offers several options regarding Market positions based on perceived value and price. This particular modular Framework can be used in aggregation with the Ansoff matrix and it can also be used in alternative or as an extension of porter’s generic strategies. There are 8 significant positions existing within this particular model such as “low price and low value added”, “low price”, “hybrid”, “differentiation”, “focused differentiation”, “risky high margins”, “Monopoly pricing and loss of market share” (Mulder 2018). All of these 8 positions across the entire clock are highlighting the different strategies which will be successful within the marketplace.
Porter’s generic strategies are continuously explained to be a significant model which utilizes the direction of the strategy within an organization through 4 major and primary strategies (Ali and Anwar 2021). The idea of Porter’s generic strategies can be explained to be based on the relative position within every industry where the firm is trying to determine its position within the particular industry and to identify the profitability range whether is below or above the industry average. The four significant strategies of the porter’s generic strategies are considered to be cost leadership, differentiation focus and cost focus. 4 of these primary strategies are based on the company’s preference of choosing one particular strategy so that the strategic decision can be underpinned by the company without spending more time to evaluate the positioning (Islami, Mustafa and Topuzovska Latkovikj 2020).
According to the 8 different positions of the bowman’s strategy clock, different strategies for the successful operations within the marketplace are described. According to the first position, low price and low value added is about the quantity selling. The product and services are low in value and the price point is also at its least or lowest point. This combination is making it the least competitive area according to the strategy clock (Desai 2019). The position two is suggesting low prices were becoming the lowest price option for most of the customers in a market make this particular strategy successful because it helps with the cost efficiency and reduction process to be improved. The third position is providing the concept of hybrid positioning that differentiation and low prices are compared among each other. With the price being competitive it is ideally expected that most of the low perceived prices are the consideration of the buyers where the promotion of added value of the products will also be explained. The fourth position identifies the differentiation strategy where the business is Focus needs to be on differentiating the production services from its existing competitors through high perceived value. Position explains about the focus differentiation process through high value at a high price. With this particular differentiation and combination the strategy provides higher profits to the firm but the difficulty is based on maintaining this strategy. The 6th position provides identification of risky high margins where the high price is pointed without the perceived added value (Nunes et al. 2021). The 7th position explains about the Monopoly pricing of the Monopoly market segment about the single companies controlling the pricing and the products availability. This particular position also considers other factors such as competitors, values, and price points. According to the 8th position the laws of market share is the worst position that can be explained to the company regarding their existing marketing decline. Due to the lack of differentiation and combination within price and market feet many companies lose their existing market share (Helmold 2020).
According to the four significance strategies of the porter’s generic strategies the first strategy is based on cost leadership at the farm and setting out its low cost producers within the industry. This particular source explains cost advantages on the structure of the industry (Abdolshah, Moghimi and Khatibi 2018). The proprietary technology, preferential access to raw materials and the economies of scale are the major determinants of the cost leadership for any company and its products. This particular strategy helps in earning the overall sustainability and cost leadership while being the average performer within the industry. The second strategy is based on a differentiation strategy where the company is seeking unique objectives within the industry where the dimensions will be widely valued by the customers. Here the attribution is based on many buyers within the industry for perceived value and the unique positions where the needs of the customers are properly made with a premium price (Lee, Hoehn?Weiss and Karim 2021). The third strategy explains about the focus strategy where the niche markets are generally targeted so that the dynamism of the market can be utilized according to the unique needs and requirements of the customers. Within this particular strategy then low cost and well specify products at the major criteria of the entire strategy where the focus strategy is mainly finding the approach where cost focus and differentiation focus are the primary criteria.
The significant comparison of Bowman’s strategy clock and Porter’s generic strategies are based on its foundations. Bowman’s strategy clock was first evaluated and extended from the idea of Porter’s generic strategies. The differentiation lies within the definition as Bowman is trying to create a significant perceived value of the entire marketing strategy whereas Porter is trying to determine the firm’s profitability against the industry averages. Women provide a significant amount of opportunities to the farms through which they will be able to understand the changes they might need to implement within their marketing strategies where Porter is continuously trying to determine the position of the farm, the market industry in comparison to its competitors and the industry average (Williams and Aaron 2018).
In this particular question the bowman’s strategy club will be used to assess the market position of Tesco UK within the market segment of the United Kingdom. For this particular analysis 3 particular positions of the bowman’s strategy clock are utilized such as low price & low value, differentiation and hybrid.
According to the low value and low price strategy Tesco UK is currently using this particular strategy within the United Kingdom. Tesco uses the particular low price strategy to support the commodities values. For example Tesco is lowering its product prices for a long time to ensure that the company is getting the appropriate competitive advantage against its competitors. The low price commodities as a result and implying that is cause products are lower margin. Telescope strategy of focusing on the customers interest attracting more customers to purchase the high volume and low rate commodities (Juliana and Nyoman 2019). High volume of profitability and return are provided to the business of Tesco by the low margins.
According to the hybrid position of Tesco this particular strategy helps Tesco in performing its business activities through the moderate operation of strategies. Despite the low pricing strategy used by Tesco it is harmonizing its cost on the basis of hybrid dimension full stop Tesco is using its returns from investments to reinvest within the retaile market segment. The reinvestment of Tesco has enabled it to expand its business activities and operations from food merchandise to non-food products as well. As a result the firm has established diversified business operations within the UK market segment to attain a higher market share (Echchakoui 2018). The regional and the diversified products have also increased the volume of Tesco as it has created better opportunities for reinvestment. The hybrid strategy is helping Tesco to increase the market ability through diversity and improve the competitive advantage of the company.
According to the differentiation position it is helping Tesco to assess the business activity uniqueness and also strategizing the market ability levels enhancement. Within the business activities of Tesco the particular unique point is based on the operational technique of the company. Tesco UK has included its several retailing platforms within its operational methods. In the current time Tesco is also operating within 9 significant platforms of retailing including Tesco express, petrol station and Tesco extra amount others. These retailing platforms are all independent due to which the performance of one particular retail platform does not affect the performance of another retail platform (Zhang, Leng and Zhou 2020). This particular strategy has helped the company in diversifying its business operations. The diversification has continuously enhanced test scores market ability levels as it has boosted the competitive advantage of Tesco over the UK market segment based competitors.
According to the alternative strategies for Tesco UK two significant alternative strategies have been considered which the Boston consulting group’s product portfolio Matrix is and the five forces analysis.
The Boston consulting group’s product portfolio matrix
Based on this particular matrix the company is analyzing the brand’s portfolio. The United States consulting group for businesses first developed this particular Matrix to use in planning the product portfolio. The four significant categories of this Matrix are dogs, cash cows, question marks, and stars.
The dog category represents the products of a company which has a lower share of the market growth.
The cash cows category is representing the high of a slow growth marketplace.
The question marks are presenting the products with high growth rate and low relative market shares (Lauer 2019).
Finally the star category represents products which have a high share of the market within a high growth market segment. Stars are the major category which generate the most of the income for a business.
According to the five forces analysis strategy it mainly helps any business strategies to analyze and evaluate ways for a competitive environment. The 5 forces analysis always allows the strategies to include all the dynamics of the market before the decision making process. For instance if any corporate strategy is considering digital technology and its impact on the competitive environment then the five forces need to be evaluated so that the contemporary and innovative digital industries can be considered. The five major areas of this particular strategy are “the bargaining power of buyers”, “the bargaining power of suppliers”, “the threat of new entrants”, “the rate of substitutes” and “the competitive rivalry”.
In case of the bargaining power of buyers it only increases when any new government law is imposed or the competitive business position is weakening for the company. In this particular case Tesco’s bargaining power of the buyers is low because of his competitive advantage and its low pricing strategy.
The idea of bargaining power of supplies is reversed with the power of purchasers because bargaining power of suppliers may change with the changes in the prices of the products within the industry. In the case of Tesco UK the bargaining power of suppliers is currently low but it can change on behalf of the suppliers if the suppliers are offering high prices instead of low prices.
According to the understanding of the state of New entrance it can be said that within the market industry of Tesco it has a low rate of new entrants. The main reason behind this low rate is that the company has been conducting its business operations for a long period of time where the loyal customer base has already been created along with the Goodwill of the company.
With factors determining the threat of substitute Tesco does not have a significant trade related to this particular area of the analysis because there are products for product substitution but the pricing and the quality always stands in the way of determination at the end of the customers (Lucidity 2021). Tesco’s product quality has a superior competitive advantage providing to it that lowers the rate of substitutes.
The competitive rivalry is high within the UK market segment but the competitive advantage earned by Tesco has always been a life saver for the company. Here the competition among the existing forms is continuously changing the aspect of competitive rivalry for Tesco but for now it has been low.
References
Abdolshah, M., Moghimi, M. and Khatibi, S.A., 2018. Investigating competitive advantage in banking industry based on Porter’s Generic strategies: IRANs newly-established private banks. International Journal of Applied Management Sciences and Engineering (IJAMSE), 5(1), pp.52-62.
Ali, B.J. and Anwar, G., 2021. Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. Ali, BJ, & Anwar, G.(2021). Porter’s Generic Competitive Strategies and its influence on the Competitive Advantage. International Journal of Advanced Engineering, Management and Science, 7(6), pp.42-51.
Desai, C., 2019. Strategy and strategic management. In Management for Scientists. Emerald Publishing Limited.
Echchakoui, S., 2018. An analytical model that links customer-perceived value and competitive strategies. Journal of Marketing Analytics, 6(4), pp.138-149.
Helmold, M., 2020. Negotiations as Integral Part of the Corporate Strategy. In Successful International Negotiations (pp. 45-57). Springer, Cham.
Islami, X., Mustafa, N. and Topuzovska Latkovikj, M., 2020. Linking Porter’s generic strategies to firm performance. Future Business Journal, 6(1), pp.1-15.
Juliana, J.P.E. and Nyoman, Y.N., 2019. Factors influencing competitiveness of small and medium industry of Bali: Porter’s five forces analysis. Russian Journal of Agricultural and Socio-Economic Sciences, 89(5).
Lauer, T., 2019. Generic strategies, outpacing and blue ocean-discussing the validity of three strategic management theories using case studies from airlines and grocery retail. Theory, Methodology, Practice, 15(1), p.57.
Lee, C.H., Hoehn?Weiss, M.N. and Karim, S., 2021. Competing both ways: How combining Porter’s low?cost and focus strategies hurts firm performance. Strategic Management Journal, 42(12), pp.2218-2244.
Lucidity. 2021. Introduction to Bowman’s Strategy Clock. Retrieved on 22 February 2021 from: https://getlucidity.com/strategy-resources/introduction-to-bowmans-strategy-clock/
Mulder, P. 2018. Bowman Strategy Clock. Retrieved on 22 February 2021 from ToolsHero:
https://www.toolshero.com/strategy/bowman-strategy-clock/
Nunes, B.C., Pimentel, J., Malheiro, J., Ferreira, M.R. and Proença, J.F., 2021. Life in a Bag: Sustainability, Green Economy, and Business Strategy–A Case Study. In Handbook of Research on Nascent Entrepreneurship and Creating New Ventures (pp. 335-350). IGI Global.
Williams, R. and Aaron, J., 2018. Specialization as a small business strategic approach. Small Business Institute Journal, 14(2), pp.1-15.
Zhang, C., Leng, M. and Zhou, L., 2020. Developing strategies of social enterprises explained using Porter’s five forces analysis model: Taking mental challenged car wash as an example. International Journal of Organizational Innovation (Online), 12(3), pp.50-64.
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