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Just like in the world of Middle Earth, getting strategy right in the business world can be a challenging quest. But fear not, as Henry Mintzberg has developed a powerful framework for developing successful strategies. Drawing inspiration from the Five Wizards, Mintzberg's 5 Ps of Strategy - Plan, Ploy, Pattern, Position, and Perspective - provide different paths to achieving strategic victory. In this article, we'll explore each of these approaches in detail, using examples from the business world to illustrate their practical application. So grab your staff and let's set off on a journey to uncover the secrets of strategic success!
Mintzberg's 5 Ps of Strategy
Henry Mintzberg once argued, getting strategy right is a challenging task that requires a multifaceted approach. To help businesses navigate this complex landscape, he developed his 5 Ps of Strategy – five distinct approaches that can be used to develop a robust and practical strategy. Mintzberg's 5 Ps of Strategy include Plan, Ploy, Pattern, Position, and Perspective.
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We will explore each of the 5 Ps in detail below (in LOTR theme) and see how they were applied in real-life scenarios.
Strategy as a Plan - Gandalf the White
Just as Gandalf the White is a master of planning and devising strategies to defeat Sauron and his forces, the "Plan" element of Mintzberg's framework involves creating a deliberate course of action to achieve a specific goal. For instance, IndiGo Airlines, one of India's leading airlines, adopted a single-aircraft configuration (A320) to fly on short routes with ATR aircraft. This enabled the company to cut costs and explore unexplored market routes to tier 3 cities in India, which were previously underserved. By using cheaper and more efficient aircraft, IndiGo was able to cater to low-density traffic on these routes and maintain profitability.
Strategy as a Ploy - Saruman the White
Saruman the White is known for his cunning and manipulative tactics, and the "Ploy" element of Mintzberg's framework involves using maneuvers or tactics to gain an advantage over competitors. For example, the rivalry between Boeing and Airbus for dominance in the aircraft manufacturing industry. When Airbus launched its superjumbo A380, it seemed to have overtaken Boeing's 747. However, Boeing changed the game by unveiling the “Sonic Cruiser,” a concept jet airliner that focused on speed and range. This move could be seen as a desperate gamble or a public diversion. Nevertheless, it allowed Boeing to disrupt Airbus's plans and regain its competitive edge.
Strategy as a Pattern - Radagast the Brown
Radagast the Brown is a wizard who is attuned to the natural world and the patterns of life and death. Similarly, the "Pattern" element of Mintzberg's framework involves recognizing consistent patterns in behavior or actions over time that reflect an organization's strategy. For example, Apple's strategy of decreasing the prices of its older models on the same day as the new ones are released. This allows the company to increase combined device and services profits by dropping the entry-level price. Meanwhile, the top-end price is kept the same since they view it as delivering sufficient units to meet supply and demand curve equilibrium.
Strategy as a Position - Alatar the Blue
Alatar the Bluecan be seen as representing the "Position" element of Mintzberg's framework, which involves understanding an organization's place in the market relative to its competitors. Great examples of this are the ways that Apple positioned itself in the music and media industry. iTunes integrated very well with all the devices, including Macintosh computers. This gave them an edge over their competitors for people looking for computers to serve as media centers. Apple combined design, ergonomics, and ease of use in a device and then tied it into a platform that kept that device updated with music without any hassles.
Strategy as a Perspective - Pallando the Blue
Pallando the Blue is known for his empathy and compassion and can be seen as representing the "Perspective" element of Mintzberg's framework, which involves understanding an organization's view of its business and the world around it. The choices an organization makes about its strategy are heavily influenced by its culture. For instance, Subway perceives itself as a company that emphasizes healthy food with excellent service. In every country it operates around the world, Subway maintains a consistent approach to quick service, standardized processes, low cost, healthy options, and clean dining areas. Here, strategy is a perspective, with its content consisting not just of a chosen position but of an ingrained way of perceiving the world.
By considering these different perspectives when developing a strategy, businesses can better understand their strengths, weaknesses, opportunities, and threats, and develop a strategy that leverages their strengths and opportunities while mitigating their weaknesses and threats. Additionally, by recognizing that strategies must be adaptable in the face of changing market conditions and other external factors, businesses can develop strategies that are both effective and flexible.
In conclusion, Mintzberg's 5 Ps of Strategy provide a comprehensive framework for developing a robust and practical strategy. Although they can be used as independent approaches, businesses should consider them as a variety of viewpoints or perspectives when crafting their strategies. By doing so, they can gain a deeper understanding of the complex and dynamic business environment and develop strategies that are both effective and adaptable.
"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." - Sun Tzu
I hope you found this exploration of Mintzberg's 5 Ps of Strategy to be insightful and thought-provoking. Have you encountered similar examples in your own professional career? Do you have any additional insights or perspectives on the topic? I'd love to hear your thoughts in the comments below. Additionally, if you want to be updated articles and insights on business strategy, sign up for our newsletter to receive regular updates directly in your inbox. Don't hesitate to join the conversation and share your experiences with our community. Thank you for reading!
