Why is a product at Position 6 (risky high margins) unlikely to be successful in the long-term?

Comp. offer prod. with higher perceived value 4 lower price

According to Bowman's Strat. Clock, the positioning strategy adopted by most luxury brands is:

Focused differentiation (Position 5)

The aim of differentiation strategy is to:

Offer customers the highest level of perceived added value

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Bowman's Strategic Clock

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Questions 10

Answers

1
Which position on Bowman's Clock is of most concern to industry regulators?
Monopoly pricing (Position 7)
Loss of market share (Position 8)
Low price and low value added (Position 1)
Risky high margins (Position 6)
2
Why is a product at Position 6 (risky high margins) unlikely to be successful in the long-term?
Comp. offer prod. with lower perceived value 4 lower price
Comp. offer prod. with higher perceived value 4 higher price
Comp. offer prod. with higher perceived value 4 lower price
Comp. offer prod. with lower perceived value 4 higher price
3
According to Bowman's Strat. Clock, the positioning strategy adopted by most luxury brands is:
Focused differentiation (Position 5)
Monopoly pricing (Position 7)
Hybrid (Position 3)
Differentiation (Position 4)
4
Where are businesses like Ikea and Premier Inn positioned on Bowman's Strategic Clock?
Focused differentiation (Position 5)
Hybrid (Position 3)
Monopoly pricing (Position 7)
Low price and low value added (Position 1)
5
Bowman's Strategic Clock explores the options a business has for:
Strategic positioning
Methods of growth
Market segmentation
Managing risk
6
What strategy is essential for a bus. to be successful in being low-cost leaders in a market?
Focused differentiation
Profit maximisation
Economies of scale
Cost minimisation
7
Which 3 pos. are considered to be uncompetitive in that price is greater than perceived value?
Positions 4, 5 and 6
Positions 1, 2 and 3
Positions 1, 7 and 8
Positions 6, 7 and 8
8
Comp. in a market are regularly involved in price wars. Which pos. are they most likely to be?
Low price (Position 2)
Hybrid (Position 3)
Risky high margins (Position 6)
Loss of market share (Position 8)
9
The two dimensions used to determine options on Bowman's Strategic Clock are:
Low cost and differentiation
Risk and reward
Product and perceived value
Price and perceived value
10
The aim of differentiation strategy is to:
Offer customers the highest level of perceived added value
Achieve a significant price premium compared with comp.
Differentiate a service from those of all competitors
Offer the lowest prices in a market

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