- 1 Marks
BMIS – L1 – SA – Q7.2 – Competitive advantage
Question
According to Bowman’s strategic clock, a strategy of reducing the price of a product below the average and increasing the perceived benefits so that these are above average is a:
A focused differentiation strategy
B low price strategy
C hybrid strategy
D differentiation strategy
Answer
C
Explanation:
According to Bowman’s strategic clock, a hybrid strategy involves offering a product with above-average perceived benefits at a below-average price. This combination aims to attract customers through both value and quality, balancing differentiation with cost advantages. Option A is incorrect because focused differentiation targets a niche market with high added value and typically higher prices. Option B is incorrect as a low price strategy focuses solely on minimizing price without emphasizing enhanced benefits. Option D is incorrect because a differentiation strategy typically involves higher prices to reflect the added value, not below-average pricing.
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