There is a crucial choice in choosing the strategy position between cost leadership, differentiation and focus of an organisation and the dangers of being stuck between these positions (Johnson et al., 2013). The risk of being “stuck in the middle” allows sufficient disadvantage to the organisation in interpreting no price premium, customer loyalty and cost advantage to target consumers (Angwin et al., 2011, p. 142). Porter’s Generic Strategy Matrix shows this strategy positioning more clearly (See Figure 2.1). This practice of positioning a strategy comes apparent towards ‘British Home Stores’ (BHS) department store which specified in selling clothing and household products, and where I propose to implement a strategic position of using the strategic clock to build a Differentiated Business Strategy.
Figure 2.2 Strategic Clock
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BHS entered administration in April 2016 due to not attracting customers despite their restructuring and rebranding of the business but this came too late with unravelling financial problems (Ruddick, 2016). One of the main challenges which BHS faced was that their business was seen to be ‘stuck in the middle’ with a low perceived value and relative standard prices. With using the Strategic Clock (See Figure 2.2), the retailer was sitting in position 8 which strategies are seen to be “doomed to ultimate failure” (Angwin et al., 2011, p.