Bowman and D’Aveni’sStrategy ClockTOBY, RUBY AND MAYA

Bowman and D’Aveni’s Theory

Strategy Clock was devised to analyse which competitive strategy would be most effective and help achieve competitive advantage in a particular market

Bowman and D’Aveni use ‘market-facing’ strategies which are based on the principle that competitive advantage is gained through achieving consumer wants and needs

This strategy is similar to Porter’s generic 5 forces in a competitive market and is an extended version of the positioning map

Strategy Clock and Smart Market Positioning

Strategy clock represents different positions in a market where consumers demand different qualities from a good or service

Each position on the clock represent ways of gaining competitive advantage

A smart marketing position in a highly competitive market is to differentiate from rivals while selling at a low price – Hybrid Strategy

What is a competitive advantage?

An advantage over competitors gained by offering consumers greater value.

This allows the business to generate greater sales or margins and/or retain more customers than its competition.

There are two main types of competitive advantages:

Comparative/Cost advantage: Differential advantage:

A firm's ability to produce a good or service at a lower cost than its competitors.

When a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers.

What is positioning?

There are 3 forms of positioning: Product, Brand & Service positioning.

The process of identifying an appropriate market niche for a product, service or brand.

Be unique within the market for a particular product, in which, it addresses a consumer need that no other product satisfies. Brand positioning and service positioning work similarly.

SimVenture

In SimVenture there are many options to allow you to carry out the Bowmansstrategy clock.

You can use the marketing strategy of Bowman’s and D’Aveni’s theory as there are 8 different ways in order to differentiate from your market.

For example in order to achieve differentiation– we would be able to change the percentages on the style/features in order to be different from the other products that may already be in the market.

Multiple Choice Questions

1. What is a Hybrid Strategy on the Strategy Clock?(a) Low price(b) High price and differentiation(c) Low price and differentiation(d) Focussed differentiation

2. Which one of the following is not an example of positioning?(a) Brand(b) Service(c) Product(d) Market

1.

2.

3. How can you achieve a competitive advantage?(a) Produce a good or service at a lower cost(b) Produce a good or service different from other products(c) Produce a good or service similar to other products(d) Aiming to reduce production costs

Bibliography

Bowman, C and Faulkner, D. “The Essence of Competitive Strategy” Prentice Hall, 1995

D’Aveni, R. “Hypercompetitive Rivalries: Competing in highly dynamic environments”, Free Press, 1995

ww1: https://www.mindtools.com/pages/article/newSTR_93.htm

ww2: http://www.investopedia.com/terms/c/competitive_advantage.asp#ixzz3zZzNBOuS