STRATEGIC MANAGEMENT

Strategic Management

Strategic Management

The Strategy Clock

In the explanation of competitive strategies, there lies classification which may extend to what is called the strategic clock. It is based on the high or low value and the price that buyers perceive. It gives us the ability to move between routes or stand by without taking action. The strategic clock enriches Bowman, develops and adapts to market generic strategies are developed by Porter (based on cost leadership and differentiation), introducing elements on which to base the competitive advantages of an organization like price and value of the product or service. As generic strategies (cost leadership or differentiation) developed by Michael Porter are useful as a basis of competitive advantage of an organization. However, they have little use if a particular strategy of no value to the consumer. The market has to be able to assess what a particular organization is offering you. Assuming that the products or services of different organizations are more or less equal, consumers can choose to purchase products or services from an organization or other price based upon both the products perceived as the perceived value of it. From this point of view, the strategic clock Bowman introduces the essentials for finding sources of competitive advantage in organizations, linked directly to the attributes that consumers use when buying: price and value that gives the product or service and, in this sense, strategies that can be developed through the strategic clock are most useful for organizations that those initially identified by Porter generic (Cwmifg).

There are 8 possible and competitive options for us more enjoyable, a brief description to them is as follows:

Strategies to lower prices (cases 1 and 2)

Strategies are treated very bleak, because there is little glamour. The first is a strategy that is characterized by a low price and perceived value too low. The second option has to do with positions of low prices and a perceived value to buyers.

Hybrid Strategies (case 3)

These are marked by low prices, but betting on the differentiation from its competitors.

Strategies to increase the perceived value (cases 4 and 5)

It is to choose a product differentiation that offers a relatively high price. Case 5 is one that provides a high added value at a high price.

Strategies for the failure (cases 6, 7 and 8)

This means few opportunities in competitive markets, i.e. outside the monopoly. Option 6 offers a high-priced product with some perceived value to the buyer, which to some extent is acceptable, but in most cases leads to failure. The only viable option 7 is under conditions of market failure on the part of the offer. Option 8 is a low perceived value and priced somewhat high (Cwmifg).

The value chain

The value chain is a key tool to diagnose competitive advantage or to find out how to acquire and retain (Ritson, 2000. Pp. 35-37)..

The analysis of the value chain is to decompose the business activities strategically important to understand their impact on the behavior of costs and ...