Question

According to Mintzberg 1987, strategy comprises of 5 Ps and each of the 5 Ps is a different approach to strategy. Please explain these about Air Asia strategies.

Answer 1

In 1987, Henry Mintzberg in his Theory introduces 5P's of strategy for management. There strategies helped Air - Asia to overcome from difficulties and become successful.

STRATEGIES -

1. PLAN - To achieve goals of an organization it is required to make good plan before actions are taken . Air Asia in order to overcome it debt and increase it's customer base , made a plan to adopt cost leadership strategy and sell their services at the price lower than average industry price.

2. PATTERN - Pattern are the intended strategies ,and the pattern  which were implemented before ,But Air Asia adopted a new pattern in which they implemented a plan to attract it's customer this strategy includes low fare, safety , services and simplicity , by applying low cost strategy.

3. POSITION - It explain the position of an organization in market , and the organization interaction with internal and external forces . Earlier, Air Asia has lower position as it has threat of existing firms large cost advantage , and without strong customer base the profit into industry was low in first year . But Air Asia by applying Business Model, of low fare strategy , it  prevent new entrants into industry and helps to build it's image and strong position in market .

4. PERSPECTIVE - It is about the perspective of a customer , investors , stakeholders towards the organization . A strong perspective helps an organization to grow it's position and expand it's business . Air Asia is able to change perspective of it's customer and investors it increases the Bargaining power of buyers and prevent the threat of it's competitors and substitutes.

5. PLOY - It is an strategy to ploy  , where an organization surprise the competitors and customers by bringing a new plan which is not expected . Air Asia , also adopted restructured business level strategy and became first operator in Asia who adopted , low fare and competitive services and surprise everyone in the industry by applying a strategic plan and continue to be a leader in market by continuing to be lowest cost airline in every market.