Bowman's Strategy Clock is a business tool used to visualize the positioning of a product in a market and in relation to its competitors.
The diagram maps a product in the shape of a clock and in relation to 2 dimensions:
1. Perceived value by customers. This is how much value customers put on a product and how much they would be willing to pay.
2. Price. A product's price when compared to the average market price.
Bowman's Strategy Clock displays eight possible price and perceived value combinations on a clock face separated into four quadrants.
The 8 positions of the clock are:
Position 1. Low price and low added value: Products with a low price but little additional value. They are not distinctive and are not viewed as having great value.
Position 2. Low price: Products that are mass-produced and offer good value for the money. The profit margin is low; however, this is compensated for by the large production volume.
Position 3. Hybrid: Products found in this position are distinctive and cheap and, as a result, can be very profitable.
Position 4. Differentiation: These products provide good quality and value for an average price. These types of products can find good adoption and brand loyalty from customers.
Position 5. Focused Differentiation: Luxury and exclusive products with a strong emphasis on high quality and a high price.
Position 6. High-risk, high-margin products: Expensive products with a mediocre perception of quality. This is a high-risk position that will almost certainly fail in the long run.
Position 7. Monopoly Pricing: Companies in this position benefit from the fact that they are the only ones supplying the product. There is no competition, and companies are free to set their prices.
Position 8. Market share loss: In this situation, a business is unable to provide a useful product to its customers at a fair price. Prices do not match the value provided, and customers won't buy.
You can use this Bowman's Strategy Clock PowerPoint Template when strategizing about your company's products and presenting them to your team.
The template is fully editable and can be adapted to fit your needs.