The 5 P’s of Strategy model was developed by the Canadian management scientist Henry Mintzberg with an objective to develop five distinguished strategic visions for the organizations. The Five strategic visions are Plan, Pattern, Position, Perspective, and Ploy. All the five components allow the organizations to implement the strategy in a more effective manner.
Anatomy of the 5 P’s of Strategy :
As per the theory of Mintzberg, it is very difficult for the organizations to develop a good and an effective strategy. And with the help of his 5 P’s of Strategy model, you include and consider various aspects and possible approaches to the strategy from different angles and perspectives.
The strategy should have a long-term and futuristic approach considering the various facets and business operations of the organization. The factor competition should be considered whilst formulating the strategy, but it will be totally wrong if the entire strategy is based and developed to beat the competition in the market.
In fact, the strategy should consider the culture of the organization and the various possibilities of the development within the organization.
Strategy as Plan
In this case, the entire strategy and its planning are done in much in advance with the long-term and a futuristic approach in mind. Aftermath, the process is followed by the actual implementation and development of the strategy.
Strategy as Ploy
Here, the strategy is planned and executed with a specific intention to beat and outperform the competition in the market gaining the competitive edge and advantage.
Strategy as Pattern
In this case, the overall strategy is emerged as a pattern considering the various internal and external situations rather than being pre-planned in nature.
Strategy as Position
Here, the organizations formulated the strategy to carve a distinctive niche or an identity in the market through exclusive products or services gaining a competitive edge in the market and in the minds of the consumers.
Strategy as Perspective
In this case, the strategy is formulated as per the organizational culture and the way organization views itself.
In-depth analysis of the 5 P’s of Strategy by Mintzberg:
It is always better for the organizations to have a plan of action much in advance to be prepared for any unforeseen internal and external situations. And a well-planned strategy is a plan to deal with such situations. A plan needs to be made with a long-term and a futuristic approach in mind with its execution and development followed up in a detailed and intricate manner.
The facet of ploy is also one of the strategic options to beat the competition in the market and gain the advantage. In this scenario, the organizations can come up with something very outlandish and unexpected and surprise the market environment that also creates the waves of the ruckus within the minds of the competitors.
It can be a well placed promotional tool or a feature in the product or service that is sure to outsmart and beat the competitors as a ploy.
As mentioned earlier, the aspect is the plan in the 5 P’s of Strategy model by Mintzberg focuses on the intended strategy but the aspect of pattern comes into the picture where the strategies have already been implemented before.
The earlier patterns that have worked wonders for the organization before are an integral part of developing the new strategy. The regular pattern that has been quite successful in nature is used in the decision making flow and process. The strengths of such patterns are included in the future strategies as intentionally or unintentionally, there is a consistent positive behavior of employees and internal teams is displayed towards these patterns and are well accepted without any prejudice and issues.
The aspect of position in formulating the organizational strategy needs to be carefully understood, designed, planned, and executed as it will define the overall position of the organization in the market considering all the internal and external factors.
It focuses on how the organization wants to portray itself in the market and in the minds of the consumers that will gain it a competitive advantage. What will be the core values, unique selling propositions, nature and attributes of the offerings of products and services, and the overall brand strength and value proposition? Working on all these factors in a detailed manner will help the organization carve a distinctive position in the market with an edge over others.
The facet of perspective in the model of 5 P’s of Strategy is quite indifferent to all of the above-mentioned paths this one draws a larger perspective keeping the organization at the focal point.
The organization formulates the strategy by dwelling on the crucial and important details such as how does the target audience think about the organization? How do employees of the company perceive the management and the brand as a whole? What is the perspective of the investors and other stakeholders of the organization? The culmination and thought patterns of all these individual perspectives work as the valuable source of information for the company and help it to make a strategic choice.
The process of planning and the 5 P’s of Strategy :
The 5 P’s of Strategy model by Mintzberg should be an integral part of the organization’s culture but it is also very important to look at all these 5 P’s on an individual level for developing a successful and strong strategy.
They provide all the relevant information and helps with the aspects of testing, evaluation, market information, and internal company information. They can be used as a final check at the end of the planning process of a developed strategy to check if there are any discrepancies or loopholes. It can save a lot of money, efforts, and resources of the organization.
Example of 5 P’s of Strategy :
Plan: The technology giant continues to plan and come up with the consumer electronics that offer operational excellence and are easy to use. They also plan and come up with the various software updates expanding their ecosystem.
Ploy: The Company is highly renowned for offering the products that are innovative, unique, and outlandish in nature that gives them a competitive edge in the market. They threaten to sue their competitors that copy their technology or features of the company’s products.
Pattern: Apple uses the previous innovations that have been quite successful in the past and follows the same pattern to challenge the competition in the market.
Position: Apple has successfully carved a niche for itself in the market and in the consumers’ minds as a niche and premium brand that offers only high-end products that are difficult to compete against in terms of both hardware and software capabilities.
Perspective: The core values of Apple are innovation and to think differently and they work as an integral part of their company culture. And their product offerings to stand as a testimony to the same.