Bowman's Strategy Clock
The 'Strategy Clock' is based upon the work of Cliff Bowman (see C. Bowman and D. Faulkner 'Competitve and Corporate Strategy - Irwin - 1996). It's another suitable way to analyze a company's competitive position in comparison to the offerings of competitors. As with Porter's Generic Strategies, Bowman considers competitive advantage in relation to cost advantage or differentiation advantage. There are six core strategic options:
Option one - low price/low added value
likely to be segment specific.
Option two - low price
risk of price war and low margins/need to be a 'cost leader'.
Option three - hybrid
low cost base and reinvestment in low price and differentiation.
Option four - differentiation
(a)without a price premium:
perceived added value by user, yielding market share benefits.
(b)with a price premium:
perceived added value sufficient to to bear price premium.
Option five - focussed differentiation
perceived added value to a 'particular segment' warranting a premium price.
Option six - increased price/standard
higher margins if competitors do not value follow/risk of losing market share.
Option seven - increased price/low values
only feasible in a monopoly situation.
Option eight - low value/standard price
loss of market share.
Marketing and Core Competences (Маркетинг и ключевых Компетенций)
A core competence is the result of a specific unique set of skills or production techniques that deliver value to the customer. Such competences give an organization access to a wide variety of markets. (основные компетенции –результат определенного уникального набора навыков или методы производства, которые создают стоимость для заказчика).
Three tests of core competence.
Provides potential access to a wide variety of markets.
Should make a significant contribution to the perceived customer benefits of the end product.
Should be difficult for competitors to imitate.
When trying to identify a core competence, it is often easy to mistake them for scarce or unique resources i.e. resources rather than skills or production technologies. Also often skills and production technologies do not amount to a core competence or resource because they do not comply with one or more of the three tests. They are the thresholds that the organization must achieve to remain competitive. Threshold competences and scarce resources may not provide access to a variety of markets, may not be so significant to customers and may be less difficult to imitate.
In summary there are core competences and scarce resources, and threshold competences andthreshold resources.
In order to be competitive an organization needs material resources such as premises, a factory or offices - depending on the nature of business of course. Material resources tend to be the most straightforward to achieve. Then an organization needs to achieve the right balance between Human Resources, training and recruitment. This state is more difficult to achieve. Intangible resources, including core competences are the most difficult and challenging to achieve. This is depicted in the diagram above. In fact they drive competitive advantage.