Bowmans and Tesco Strategy Essay

2894 Words Nov 8th, 2014 12 Pages
This report applies Bowman’s Strategy Clock framework in order to accurately and appropriately analyse how Tesco come to making strategic decisions |

| Tesco Report |

| Tesco Report |

The aim of this report is to examine what generic strategy Tesco employs, the position this strategy takes on Bowman’s clock and whether Tesco’s generic strategy provides an effective competitive advantage. “Strategy is the direction and scope of an organisation over the long term: which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson et al, 2005)
Industry Sector
The grocery retail industry is one of the
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This model analyses an organisations competitive position in comparison to the offerings and its competitors by considering competitive advantage in relation to cost advantage or differentiation advantage. The various Positions on Bowman’s model represent different positions in the market; there are 8 different competitive positions, three of which are destined to fail. Bowman’s Clock also provides organisations with a set of generic strategies for achieving competitive advantage. “Generic Strategies are concerned with how a firm intends to position itself to create value for its customers in ways that are different from those of competitors.” (Harrison, 2009)
Consumers have different expectations in terms of their value for money, which the clock reflects by comparing customers’ perceived value against price (Johnson et al, 2008) As with Porters generic strategies, Bowman accepts differentiation and focus alongside price. However, Bowman’s clock considers another way of analysing a company’s competitive advantage.
Figure 1. Bowmans Strategy Clock

Source: Faulkner and Bowman, (1995)

The 8 Positions on the Strategy Clock
Positions 1 and 2 can be referred to as the price based strategies:
Position 1 is referred to as the low price/low added value or the no frills strategy. Organisations operating at this position offer products and services with few benefits at a low price. This strategy is best used in

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