Assume you are starting a new company “Indian Tourister” which will deal with manufacturing and selling of Bags of all types i.e. Hand Bags, Purse, Slings, Luggage Bag, Back packs, etc. The company will sell the bags of all sizes and will target male and

Answer: 
  1. Assume you are starting a new company “Indian Tourister” which will deal with manufacturing and selling of Bags of all types i.e. Hand Bags, Purse, Slings, Luggage Bag, Back packs, etc. The company will sell the bags of all sizes and will target male and female. The bags will be available online as well as company owned retail outlets. Frame the Vision, Mission, Goals, Objectives, Plans and Policies of the organisation “Indian Tourister”. 

  2.  From the case above answer the following question:

    1. Explain the Mintzberg’s 5P strategy for “Indian Tourister” 

 

Comments

BeingSkilled's picture

The word “Strategy” has been used in different ways even it is defined in 1 way.

Different definitions gives us different perspective to understand it differently.

Mintzberg provides five definitions of strategy:

  1. Strategy as a Plan –

    1. Strategy is an envisioned or deliberately followed path of action. Strategy is prepared in advance and later on actual implementation is done.

    2. We will follow a scientific plan after designing a strategy.

    3. Our plan is to form an alliance with American Tourister which is a global brand and we will together launch a series of co-branded products. That will give us huge amount of free market, new customers and American Tourister will also gain a lot of new customers as they

      don’t have bags which have Indian ethic designs.

    4. Together Indian Tourister and American Tourister will have largest

      market share and our competitors will be lost easily.

  2. Strategy as Ploy –

    1. Ploy is a sly plan or action which helps in turning a situation to own advantage. Businesses design ploy to undertake competitors from entering the market.

    2. Some ploys are building new facilities with large capacity or reducing prices.

    3. Indian Tourister will design products which will use significantly low raw material and since the marketing costs will be minimum, though the product is premium, we will offer it at discounted prices over the e-commerce platforms.

    4. Since the cost of acquisition of customers will be less, Indian Tourister will become a solid brand in coming years and will aim to beat VIP, American Tourister in long run.

  3. Strategy as Pattern –

a. Strategies are planned but outcomes cannot be planned and therefore the results can be favorable or not. No one can be accurate in predictions – if there will be success or not accurately as the business atmosphere is full of complexities.

  1. It is possible to look back at the results and understand the pattern which has emerged from the results.

  2. Indian Tourister exhibited its products in Mall A & Mall B in same time. In 3 days of exhibition, every 15 days for 5 months was done. It turned out that Mall A brought in sales of INR 15 lacs while the Mall B brought in sales of INR 8 lacs.

  3. Although the cost was justified in both of the cases and new customers were gained, according to the pattern, it is worth investing in Mall A more.

  1. Strategy as Position-

    1. Strategies are planned for locating or fit a business within environment and deciding on the position to adopt. For example: brand positioning, portfolios or products, positioning of market.

    2. Position may be a small market, providing low cost products and leveraging competencies to beat the competitors.

    3. Indian Tourister partnered with outlet of Zara which has super luxury showrooms in India and the world. Since Zara wanted to fit into the Indian market and wanted to partner with Indian brand, it bought the majority stakes in Indian Tourister because of which they have solid hands in the highest quality indian baggage products for both men and women. This will position Indian Tourister as a luxurious Indian Baggage.

  2. Strategy as Perspective –

    1. It is important to understand the business’ strategic perspective as that will lead to better decisions making. Stratgy is the way a company views itself in the world through its key stakeholders’ eyes – its management and employees.

    2. Indian Tourister has eye on positioning itself as a single stop shop for all baggage needs. Therefore it has over 20 different designs for each category like Hand Bags, Purse, Slings, Luggage Bag, Back Packs for both men and women.

    3. Since this gives it a position of a big brand, it is matter of time when it will be recognized by masses.

Conclusion is that Mintzberg’s 5Ps are helpful in strategizing the business operations. Each P of it adds important elements to our understanding of strategy.