Five Ps of business strategy

Similar in marketing, business strategy has also five Ps. In defining strategy Henry Mintzberg introduced perspective, plan, pattern and position that amounts to 4 Ps. Fred Nickols, a seasoned business strategist introduced the remaining one as ploy. Here is concise explanation of each of the five Ps:

Perspective:    As the primary P, it explains the vision and directions a business takes in progression towards the end state. Vision is much broader than direction, true enough. Yet vision gives expression to business concept that so far remained as theoretical one to transform into practical one. Direction on the other hand germinates from business policy that sets the guidelines and norms that impact the conduct of any business.

Plan:  Although secondary to perspective, plan is a precise statement that explains how to go from here to there. It explains the journey and indicates the ends to be achieved with the means in hand and with the ways to use the means effectively and efficiently. This plan identifies the mileposts besotted in the journey and how progression takes place in gradual manner.

Position:  As third P, position is an unassailable mid-point where demand –supply dynamics gets played out. On the demand side is the market position evolved from the understanding of market needs. Supply side indicates the product-service that is offered to the market. Subsequently, such position can morph into market leadership and/or product leadership.

Pattern:  Business strategy displays varied patterns some are stunning and unknown. A trained business strategist can pre-plan a pattern by bringing out innovation that are either breakthrough or disruptive. Secondly, pattern can emerge over a period of time where firm finds out, for example, high-end product to go with high-end market to sustain both market and product leadership.

Ploy:  Main function of business strategy is to hide the real intention. It is an accepted fact that firm cannot hide its production capability or capacity but it must make all efforts to couch strategy in such terms that competitors cannot find out the underlying intention. Ploy has another role. Fred Nickols says resources are deployed in business strategy and employed in business tactics to bridge the gap between ends and means.

 

Cheers!

 

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist