Mintzberg's 5Ps of Strategy

"Mintzberg's 5Ps of Strategy" is a comprehensive framework developed by Henry Mintzberg, a renowned academic and author on business and management, in 1987. It was designed to provide a more detailed understanding of what strategy is and how it's formulated.

The five Ps in Mintzberg's strategy concept stand for Plan, Ploy, Pattern, Position, and Perspective. Let's delve into each of them:

Plan: This is the most traditional view of strategy. A plan is a consciously intended course of action, a guideline to deal with a situation. The strategy in this sense gives the organization a sense of direction and a set roadmap.

Ploy: Here, strategy is a specific maneuver to outwit a competitor. Essentially, the strategy becomes a ploy designed to deceive, manipulate, or otherwise gain an advantage over business rivals.

Pattern: Strategy in this sense, refers to a consistent pattern of past behavior, with a strategy realized over time rather than planned or intended. The realized pattern may have emerged without any preconceived intent or could have started as an intended strategy and then evolved.

Position: This perspective sees strategy as a means to define and communicate the organization's position in the marketplace. This includes determining how the organization is different from its competitors and how that difference can be maintained.

Perspective: In this case, strategy is a way of perceiving the world. This emphasizes the behavior and identity of the organization, a shared way of thinking and understanding.

The purpose of Mintzberg's 5Ps is to provide a complete understanding of the concept of 'strategy' and its various dimensions, enabling managers to apply a more comprehensive and flexible approach when developing strategic plans.

By understanding each of these elements, managers can create a robust strategy that considers all aspects of the organization and its environment. For instance, by considering "ploy," managers can anticipate competitors' actions and plan accordingly. The "pattern" aspect allows managers to analyze past successful strategies and learn from them, while the "position" perspective allows them to understand their competitive landscape.

Importantly, Mintzberg's 5Ps were developed to illustrate that strategy is not just a formal plan but an adaptive process involving different aspects, which has profoundly influenced strategic thinking.

Regarding the benefits, Mintzberg's model provides a comprehensive view of strategy, allowing managers to consider different perspectives, thus enhancing the organization's strategic thinking. It also helps managers to understand that strategy is not static and needs to be adaptable and flexible, which can lead to more robust and effective strategies.

However, it also has potential drawbacks. It can be argued that the 5Ps model may be too broad and complex for some organizations, particularly small businesses. It could also be seen as an oversimplification, as it might not consider the full complexities of organizational dynamics and market forces.

Let's take Apple Inc. as an example. Their strategy can be seen in the 5Ps context. As a plan, they are known for their innovation and high-quality products. As a ploy, they have outmaneuvered competitors through unique product launches and marketing campaigns. As a pattern, they have consistently focused on innovation and customer-centric designs. In terms of position, they've established themselves as a premium brand in the market. Finally, from the perspective aspect, they perceive the world as a place where technology and design can intersect to create unique user experiences.

See Also

• BCG Matrix