What is the Bowman Strategy Clock, and what are best practices, tools and online templates for teams and organizations?
Definition of Bowman Strategy Clock
The Bowman Strategy Clock was developed by economists Cliff Bowman and David Faulkner and is a powerful strategy positioning tool used to gather information on a company’s market position relative to the competition. Bowman’s Strategy Clock shows how product positioning is based on two dimensions: price and perceived value.
Description of Bowman Strategy Clock
The Bowman Strategy Clock fits eight different combinations of price and perceived value on a clock face, divided into four quadrants. When deciding how a product will be positioned, a company can choose a position from the Bowman Strategy Clock which offers the most competitive advantage. The eight possible positions on the clock are described below, starting at the 12:00 and rotating clockwise around the face.
Position 1. Low price and low added value: Products in this position are not differentiated and are not perceived as having high value. It is not the most competitive position on the Clock. The low price is the only competitive advantage the product has at this point.
Position 2. Low price: In this position, products are mass-produced and have good value. The profit margin is low but is made up for by the high production volume and generally profits are high. Economies of scale are put into effect in this position and price wars often occur among competitors.
Position 3. Hybrid: This position on the clock is usually very effective, because the products in this position are differentiated and low priced. As a result, products have a high degree of perceived value by the customer and are therefore in high demand.
Position 4. Differentiation: In this position, companies offer high quality at an average price, which results in a high degree of perceived value. At this position, customers become more brand-loyal and will try to select these products, even willing to pay slightly more for them.
Position 5. Focused Differentiation: Luxury and exclusive brands focus on this clock position, as it is where high quality meets a high price. Brands use targeted segmentation, promotion and distribution as sales and marketing tools, which lead to higher profit margins. Since competitive brands reside in this segment also, they work together to keep prices high.
Position 6. Risky high margins: Products in this segment are priced high and the customer’s perceived value is just mediocre. This position is very risky and will most likely ultimately fail. Most customers will eventually look for a higher quality product in the same price range or a similar product for a lower price.
Position 7. Monopoly Pricing: In this position, companies have the advantage of being the only contenders offering the product. There is no fear of competition and brands can determine their own pricing, and customers only have the choice of purchasing the product or not. The customer does not have other products to choose from. In most countries, monopolies are regulated in order to prevent them from charging exorbitant prices or offering an inferior product.
Position 8. Loss of market share: In this position, a company is not able to offer a valuable product to the customer, and the customer will not purchase. Prices are too high and market share is lost.
By analyzing its position on the Bowman Strategy Clock, a company will become more aware of its position in the market as compared to their competitors. The ideal locations on the clock are in positions 3, 4, and 5, where profits and perceived value are highest. Positions 6, 7, and 8 are the least favorable and riskiest for a company to choose to be.
Tools & Templates
Various types of market surveys, pricing reports and customer service interviews can be used to provide insights, data and additional support when using the Bowman Strategy Clock method.
upBOARD's Online Bowman Strategy Clock Tools & Templates
Unlike most traditional strategy techniques, upBOARD’s online Bowman Strategy Clock tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
Learn more about upBOARD’s portfolio of other business strategy best practice tools and templates, including:
ADL Matrix, Affinity Diagrams, Baker’s 4 Strategies of Influence, Balanced Scorecard, Benchmarking, Blue Ocean Strategy, Bowman Strategy Clock, Build-Measure-Learn Feedback Loop, CAGE Distance Framework, Competitive Analysis, Competitive Landscape Analysis, Contingency Planning, Core Competence Analysis, Critical Success Factors, Discovery Driven Planning, Five Forces Model, Force Field Analysis, Gap Analysis, GE McKinsey 9-Box Matrix, Go To Market Strategy, Hambrick & Frederickson’s Strategy Diamond, Hedgehog Model, Hook Model of Behavioral Design, Hoshin Planning System, Kay’s Distinctive Capabilities Framework, Kotler’s Five Product Levels Model, Kotler’s Pricing Strategies, Lafley & Martin’s Five Step Strategy Model, McKinsey’s Seven Degrees of Freedom for Growth, Mission Statements, Mullin’s Seven Domains Model, OGSM Framework, Ohmae’s 3-C’s Model, PEST Analysis, Porter’s Diamond, Portfolio Management, Purpose Statements, Pyramid of Purpose, Scenario Planning, Simonson & Rosen’s Influence Mix, SOAR, Strategic Goals, Strategic Roadmap, Strategy Map, Strategy Roadmap, Strategy Uncertainty Map, SWOT Analysis, TOWS Matrix, Triple Bottom Line, USP Analysis, Value Chain Analysis, Value Disciplines Model, Value Net Model, Values Statement, Vision Statements, VRIO Analysis, and Weisbord’s Six-Box Model.