What components of strategy is Widget Corp. utilizing in their expansion plan based on Mintzberg's five Ps of strategy?
The components of strategy that Widget Corp. is utilizing in their expansion plan, based on Mintzberg's five Ps of strategy, are:
- A position
- A ploy
The Importance of Strategy Components
A position: In the context of Widget Corp.'s strategy, a position refers to the competitive stance the company takes to gain an advantage in the market. By buying patents that could potentially be used by a competitor to launch a rival product, Widget Corp. is positioning itself strategically to secure its market position and prevent potential threats.
A ploy: A ploy, on the other hand, involves strategic moves or tactical acts that companies use to outwit or outperform their competitors. In this scenario, Widget Corp.'s decision to buy patents from a competitor is a ploy aimed at disrupting the competitor's plans and strengthening Widget Corp.'s market position.
Understanding Strategic Planning and Competitive Advantage
Strategic Planning: Strategic planning is the deliberate and intended approach that companies use to develop their strategies through a structured planning process. It involves thoroughly considering a course of action outlined in strategic plans to achieve specific aims and objectives. Widget Corp.'s decision to buy patents is a result of strategic planning to support its expansion objectives.
Competitive Advantage: By utilizing a combination of a position and a ploy in their strategy, Widget Corp. aims to gain a competitive advantage in the market. This advantage can help the company differentiate itself from competitors, attract customers, and ultimately achieve its expansion goals.
In conclusion, Widget Corp. is strategically leveraging a position and a ploy in their expansion plan to strengthen their market position, outperform competitors, and achieve their objectives. By understanding and implementing Mintzberg's components of strategy, the company aims to drive growth and success in the electronic device manufacturing industry.