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Bowman’s Strategy Clock is a tool for evaluating an organisation's competitive advantage

and strategic positioning (Bowman & Faulkner, 1996). The model seeks to illustrate product
positioning is based on price and perceived value dimensions (Radut, 2015) and contains
eight generic strategies for achieving competitive advantage (Krystallis, 2010). These
include:

1. Low price/low value focusing on a price-sensitive market segment (Bowman &


Faulkner, 1996)
2. Low price focuses on low margins and high volumes (Gore, 2003)
3. Hybrid focuses on low cost but offer products with high perceived value (Baraskova,
2010)
4. Differentiation focuses on products with high perceived value with or without price
premium (Gore, 2003).
5. Focused differentiation focuses on premium products with a high perceived value
(Gore, 2003).
6. Increased price/standard value focusing on products with higher margins
(Baraskova, 2010)
7. Increased price/low values (monopoly) (Bowman & Faulkner, 1996)
8. Low value/standard price which is attributed to a loss of market share (Bowman &
Faulkner, 1996).

Figure 1: Bowman’s Strategy Clock (Source: UniCAF, 2022 - adapted from Bowman &
Faulkner, 1996)

The company that will be used for a critical analysis on competitive position using Bowman’s
Strategy Clock will be Microsoft.

Microsoft is a global leader in operating systems and holds a large monopoly. Other products
include software development tools, mobile operating systems, and gaming console (Xbox)
(Colomus, 2012). Microsoft has been criticized for their stronghold on the barriers of entry
into the operating system market (Colomus, 2012) and has been the subject of multiple
investigations of governing bodies (Comanor, 2001). On the Bowman’s Strategy Clock
Model, this would position at Position 7: Increased price/low values

According to Colomus (2012), Microsoft is able to create this monopoly by applying


strategically patents on its products and preventing the reproduction of its
software. Consequently Microsoft is able to charge high prices due to the lack of choice
which is forced onto the customers (Colomus (2012), (Comanor, 2001).

References:

Baraskova, J., 2010. Strategic Positioning and Sustainable Competitive Advantage in Food
Industry. https://d1wqtxts1xzle7.cloudfront.net/33977962/Jekaterina_Baraskova_master_thes
is-with-cover-page-v2.pdf (Accessed: 02-Oct-2022)
Bowman, C. & Faulkner, D.O. (1996). Competitive and Corporate Strategy. 1st ed. Irwin
Professional Publishing.

Comanor, W. S. (2001). The Problem of Remedy in Monopolization Cases: The Microsoft


Case as an Example. The Antitrust Bulletin, 46(1), 115–133.
https://doi.org/10.1177/0003603X0104600103 (Accessed: 02-Oct-2022)

Gore, L., 2003. A study of the building industry: the dominant influencing factors of
consumer choice towards strategy (Doctoral dissertation). URI:
http://hdl.handle.net/10413/4178 (Accessed: 02-Oct-2022)

Radut, C., 2015. Strategies of change for the hotel industry. Porter, Kotler, Bowmann
positions. Knowledge Horizons. Economics, 7(4), p.79. Available at:
http://orizonturi.ucdc.ro/arhiva/khe-vol7-nr4-2015/Casiana_Radut.pdf (Accessed: 02-Oct-
2022)

Tassabehji, R. and Isherwood, A., 2014. Management use of strategic tools for innovating
during turbulent times. Strategic Change, 23(12), pp.63-80. https://doi.org/10.1002/jsc.1960

UniCAF, 2022. Managing Strategy, Operations and Partnerships. Week 3 - Topic Overview.
Available at: https://vle-uel.unicaf.org/mod/resource/view.php?id=129932 (Accessed: 02-
Oct-2022)

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