- 1 Marks
BMIS – L1 – SA – Q7.5 – Competitive advantage
Question
According to Bowman’s strategic clock, what conditions should apply for an entity to pursue successfully a strategy of focused differentiation?
A The product should have high added value, with a high price
B The product should have standard or average added value, with a high price
C The product should have high added value, with an average price
D The product should have standard or average added value, with an average price
Answer
A
Explanation:
According to Bowman’s strategic clock, focused differentiation involves targeting a niche market with a product that offers high added value, justifying a high price. This strategy focuses on delivering unique benefits to a specific segment, commanding a premium price due to the perceived value. Option B is incorrect because standard or average added value does not support a high price in a focused differentiation strategy. Option C is incorrect as an average price undermines the premium positioning required for focused differentiation. Option D is incorrect because both standard added value and average price align with a broader, non-differentiated strategy, not focused differentiation.
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