STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

The Strategy Clock

The concept of strategy clock is significantly important in relation with the concepts of strategic management. This particular concept usually encourages managers to strive for an effective business performance. For the purpose of gaining competitive advantage; companies tend to implement certain concepts of strategic management in a manner that ensures the survival and growth of the companies. Being inspired from the concepts of Porter and giving a completely new domain, Cliff Bowman and David Faulkner established the Strategy Clock Concept. This strategic management concept is essentially assumed to be an extension of the concepts provided by Porter to the three strategic positions (Hills & Jones 2009 Pp. 56-70).

The strategy clock provides eight dimensions in order to explain the costs and perceived value combinations being used by different firms. The probabilities of each strategy to be successfully implemented are also evaluated by the strategy clock. The eight dimensions of strategy clock include the following;

Position 1: Low Price/Low Value

This strategy bounds the companies to compete within the domain of bargain basement by providing low value items in low prices.

Position 2: Low Price

The strategy related to the position two is generally assumed to be adopted by companies who are believed to be low cost leaders. Wal-Mart remains a good example of this strategy.

Position 3: Hybrid (moderate price/moderate differentiation)

The companies which chose this strategy provide products at low cost; however the quality of products being provided is a lot better than those of the low price cost leaders.

Position 4: Differentiation

The companies adopting differentiating strategy tends to offer the customers with high perceived value products. Premium prices and excellent quality are the basic characteristics of this strategy.

Position 5: Focused Differentiation

Focused differentiation tends to go even beyond the differentiation strategy. Truly customized and designer products come under this category.

Position 6: Increased Price/Standard Product

This is a strategy to increase price for the same value and the same products being delivered to the customers.

Position 7: High Price/Low Value

This strategy tends to provide low value and high prices. This kind of pricing is also known as monopoly pricing.

Position 8: Low Value/Standard Price

This company tends to provide low value within the standard prices. The companies choosing this strategy tends to eventually lose the market share.

The Value Chain

The value chain is essentially important from the viewpoint of various concepts that fall under the ...