Strategic Clock Diagram:

Five Broad Business Strategies on the Strategic Clock:

1. No Frills (Position 1)
   A no-frills strategy offers products at low prices with low perceived benefits. This is attractive to price-conscious customers who prioritize cost savings over additional features or quality. For SBL, this could apply to basic, generic pharmaceutical products targeted at highly price-sensitive customers in West Africa.
2. Low Price (Position 2)
   A low-price strategy provides products with average benefits at a lower cost than competitors. This strategy works when the business can achieve lower production costs, allowing them to sell at competitive prices. SBL could use this strategy to undercut competitors like Yellow PLC or Green PLC in the generic pharmaceutical sector.
3. Hybrid (Position 3)
   A hybrid strategy offers higher-than-average benefits at a lower-than-average price. This mix of differentiation and cost leadership provides value to customers by delivering quality at affordable prices. SBL could use this approach in its retailing and wholesale distribution division, providing affordable and high-quality pharmaceutical products to gain customer loyalty.
4. Differentiation (Position 4)
   A differentiation strategy offers products with higher perceived benefits than competitors at an average or slightly higher price. Customers are willing to pay a premium for added value, such as higher quality or innovation. SBL could adopt this strategy for its patented tropical medicines, using its competitive advantage in manufacturing unique products for a niche market.
5. Focused Differentiation (Position 5)
   A focused differentiation strategy targets premium market segments with highly differentiated products. The price is significantly higher, and customers perceive the product as offering superior benefits. SBL could use this strategy for its export division, branding specific high-quality medicines for international markets where consumers are willing to pay for premium products.

Business Strategies That May Fail:

There are also strategies on the clock that are likely to fail. For example, pricing a product too high while offering low perceived benefits is unlikely to attract customers and will result in a competitive disadvantage.

Marks Distribution:

• Diagram (2 marks)
• Explanation of each of the five strategies          (1 mark each, total 5 marks)