Strategic Analysis: Risks of Bowman's Strategy Clock and SMEs

This report delves into the risks associated with Bowman's Strategy Clock, a tool used to evaluate the competitive positions of companies, particularly focusing on its application to Small and Medium Enterprises (SMEs). It highlights the potential drawbacks of the clock, such as its partiality towards direct competitive strategies and the lack of clear instructions regarding the impact of profit on clients. The report then evaluates the suitability of Bowman's Strategy Clock compared to other competitive strategies like cost leadership, innovation, diversity, and operating efficiency, concluding that the Bowman's Strategy Clock is appropriate for SMEs as it effectively considers the perceived value of a product or service against its cost. It also emphasizes the importance of this approach for businesses in the public sector, enabling them to maintain competitive advantage and manage costs effectively. The report concludes by summarizing the identified risks and reiterating the benefits of the Bowman's Strategy Clock for SMEs in strategic decision-making.

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Table of Contents
Introduction.................................................................................................................................................2
Main Context...............................................................................................................................................2
Conclusion...................................................................................................................................................4
References...................................................................................................................................................5

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Introduction
Though the Bowman’s Strategy Clock is utilized by the four SMEs to evaluate the
competitive position of the companies while comparing with the offers of their competitors, there
are some risks involved with the Bowman’s Strategy Clock. The paper will analyze the risks
associated with the Bowman’s Strategy Clock. There are many other competitive strategies like
the diversity strategy, innovation strategy, operating efficiency strategy, cost leadership strategy
or flexibility competitive advantage. The paper will also evaluate whether different competing
approaches are suitable or not for these companies.
Main Context
Risks Associated To Bowman Strategy Clock
Bowman had challenged the concepts of Michael Porter on general strategies and
suggested that a unique, low price hybrid position might be the position that could be achieved.
Porter had himself admitted that this could be the case under some specific situations but these
conditions are not clear from Bowman’s Strategy Clock. The Bowman’s Strategy Clock is an
instrument that poses partiality by helping only the direct competitive strategy in order to
increase the market share (Panwar et al., 2016). The positions of the companies out of four
SMEs those who are above the fair value line could increase their market share, but the ranks of
those companies among the four SMES those who are below the fair value line could lead the
market share to fall. The instructions of the Bowman Strategy Clock are not so evident from the
impact of profit on the clients.
Other Competitive Strategies Are Suitable or Not For These Companies
It is vital to notice that the four SMEs as part of the business level strategy, divides the
running of their daily business into strategic units of the industry. They do this so that they could
use their resources while competing in various markets and gain competitive benefits. Some
other competitive strategies like cost leadership strategy and innovation strategy are difficult to
implement for the small businesses, as it takes long time to sell the products and services in low
costs. The diversity strategy and the operating efficiency strategy aims only certain part of the
market, instead of providing the cheapest prices to the consumers of the market. So, the four
SMEs utilize the Bowman Strategy Clock for a competitive strategy, and it clearly recognizes the

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advantages of perceived product or service versus the cost paid by the consumer (Shakhshir,
2014).
Hence, the Bowman’s Strategy Clock is appropriate than the other competitive
strategies, as it fits between the services or products which are offered. The approach is also
specific to recognize the demands of the end consumer to deliver the value of money. This is
important for the businesses which are under the public sector like the four SMEs of Spain, who
are always competing with their closest competitors for the same resources. The Bowman
Strategy Clock is also beneficial for them to keep the cost down while competing with their
closest competitors.

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Conclusion
The risks associated with the Bowman’s Strategy Clock had been evaluated. The
Bowman’s Strategy Clock only applicable for those companies who are directly involved with
the competitive strategy. Bowman's Strategy Clock had proposed the unique, low price hybrid
position, but this strategy had not clearly mentioned the conditions. By observing the various
combinations of price and perceived value, the four SMEs had chosen their position of
competitive benefit. It had also analyzed whether the Bowman’s Strategy Clock is suitable for
four SMEs in comparison with the other competitive strategies.

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References
Panwar, R., Nybakk, E., Hansen, E. and Pinkse, J., 2016. The effect of small firms' competitive
strategies on their community and environmental engagement. Journal of Cleaner
Production, 129, pp.578-585.
Shakhshir, G., 2014. Positioning strategies development. The Annals of the University of
Oradea, 977, pp.416-437.