Managing Strategy

Topics: Marketing, Competition, Strategy, Price, Strategic management, Porter generic strategies / Pages: 4 (803 words) / Published: Jan 18th, 2013


The Porter’s generic strategies and the Strategy Clock have a common purpose; they both focus on how a firm can create competitive advantage over its competitors. The purpose of the models is to create a common understanding about position of the current strategies and options for the new strategies if need be. These strategies can be used by companies to analyse its competitive position in comparison to the offerings of competitors. (

In terms of application, these models are similar because they both focus on two strategies namely cost leadership and differentiation. That is competition advantage is attained by a firm basically by how it has positioned itself in terms of its prices and perceived product value.

With regards to differences between the two models, the Porter’s generic strategies also focus on market segmentation. In that a firm gains competitive advantage by focusing on specific customers, the Strategy clock does not emphasis this aspect. Further the Bowman strategy clock extends Porter’s three strategic positions to eight. The three generic strategies are general while the strategy clock strategies are much more detailed in that they look at different value and price combinations and identifies the likelihood of success for each strategy.


With reference to the strategy clock, Ikea can be mapped as a hybrid company pursing strategic position 3. Ikea offers goods at low prices with perceived high value, for example a customer on the net commented that “every time, its trendy for less money” Further Ikea has remained profitable despite cutting prices and it is a well know brand, according to its CEO Anders Dahlvig their brand awareness is much more than the actual size of Ikea. Further the customers were made to believe that Ikea was selling a lifestyle and that they had good taste and were able to recognise value. This was a signal that they

References: Johnson et al (2009) Exploring Corporate Strategy. London, FT Porter generic strategies, http// Bowman’s Strategy Clock,

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