What are the 5 P’s of Strategy?

In 1987, the Canadian management scientist Henry Mintzberg distinguished five visions for

strategy for organisations. He calls them the 5 P’s of Strategy. They stand
for Plan, Pattern, Position, Perspective and Ploy. These five components allow an organisation
to implement a more effective strategy. A strategy is aimed at the future, concerns the long
term and involves different facets of an organisation. Competition is always a factor, but it
would be a mistake to develop strategies only aimed at competitors. The strategies should also
take into account the organisational culture and the other possibilities and developments
within an organisation.
According to Mintzberg, developing a good strategy is difficult. With the help of the 5 P’s of
Strategy, you can at least include as many different aspects as possible and approach the
strategy from different perspectives.
1. Plan
A strategy is a plan for dealing with situations. A plan has to be made before possible actions
are taken and it’s also important that the plan is followed consciously and effectively.  Goals can
only be achieved with a good plan. They enable managers to give their teams’ clarity and work
towards interim evaluations and final results. However, a clear organizational strategy requires
more than just a plan.

2. Pattern
Where making a plan is about the intended strategy, patterns are about strategies that have
been implemented before. On the one hand, there are strategies that achieved their intended
result. On the other hand, there are strategies that still have to be worked out in more detail.
For those, earlier patterns are an important part of developing the new strategy. It’s about a
regular pattern in the decision-making flow. If certain choices have already been made in the
past, an organisation is likely to make those decisions again in the future. In such cases, past
behaviour is a pattern that’s included in strategy development. It’s about intentionally or
unintentionally consistent behaviour displayed by employees and teams. Patterns are accepted
without prejudice by everyone. By becoming aware of such patterns within the organisation,
you are able to include their strengths in developing a strategy.

3. Position
This is about the organization’s position in the market, the interaction between the internal and
external context. It’s important to consider carefully in advance how the organisation wants to
position itself. What will its identity look like and does that match the idea stakeholders have of
the organisation? This can contribute significantly to developing a lasting competitive
advantage. Considering the strategic position helps against competitors and to give the
organisation a firm place in the market.
4. Perspective
Strategy is about more than the chosen position; it’s also about the larger perspective. It’s
important to find out how different target audiences perceive the organisation. How do
the employees regard their employer? What do customers think of the organisation? What is
their image among investors? All these individual perspectives and thought patterns are a
valuable source of information for the organisation, which they can use to make targeted
strategic choices.

5. Ploy
It’s also a strategic choice to use a ploy. For instance one that competitor doesn’t expect.
Organisations can surprise their environment by implementing a plan that nobody saw coming.
For instance, a phone service provider can mislead others by suddenly also offering internet
service and digital television. That puts them in competition with other potential providers of
those services. It’s a ploy to outsmart the competition.

The 5 P’s of Strategy is a planning process

Mintzberg 5 P’s of Strategy are part of an organisation’s strategy, but it’s also wise to look at
the 5 P’s as separate standpoints that all need to be considered for developing a strong and
successful strategy. It’s useful to employ the 5 Ps throughout the planning process. They
provide relevant information necessary in the initial stages of strategy development. When
implementing the strategy, the 5 P’s of Strategy can help with testing, evaluation and possibly
with making adjustments. Finally, the 5 P’s of Strategy can be used as a final check of the
developed strategy at the end of the planning process, in order to discover if there are
inconsistencies or if anything is missing. Identifying problems during the planning phase can
save an organisation a lot of money in the end.
Example:
1)  Apple
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.