5P strategic model of internationalization strategy

In order to make people understand the concept of strategy more clearly and intuitively, mintzberg summarized it as 5P:

plan

Strategy (plot)

Pattern (pattern)

Location (location)

Perspective (perspective)

In other words, mintzberg made a multi-dimensional interpretation of the strategy with 5P, which fully demonstrated the rich connotation of the strategy. Next, we will interpret the strategy from the "5P" proposed by mintzberg.

Strategy is a kind of plan, and it is a law of making action plans and solving problems consciously and purposefully. It is a plan related to the long-term development direction, development scale, development approach and service scope of the enterprise. For example, the product plan drawn up by an enterprise after insight into market opportunities belongs to the "plan", a strategy at this level.

Strategy is a plan and tool to threaten and defeat opponents in competitive games. It will put competitors at a disadvantage or be threatened. For example, the common price war is a "planning" strategy.

Strategy is the mode, behavior path and value creation mode for enterprises to compete, allocate resources and establish competitive advantage in order to achieve basic goals. What activities an enterprise needs to create products that meet customers' needs, and how to arrange these activities belong to the "model" strategy. At the same time, we can also understand the mode as a relatively fixed behavior of enterprises.

Strategy is a kind of guidance. Before entering the market, enterprises should first make clear their position in the market, and allocate resources reasonably accordingly to form a sustainable competitive advantage. For example, the positioning of Xiaomi "born for fever" clearly conveys that the target customers of the products are mobile phone enthusiasts. This explains the strategy of "positioning".

Strategy is a concept, which means that enterprises have formed a fixed way of understanding the objective world. It is the embodiment of enterprise values, and it is also the expectation, cognition, ideal, belief and behavior of the whole organization members. For example, Google's belief that "work gives challenges and challenges bring happiness" belongs to the "concept" strategy.

Based on the above introduction, with the help of mintzberg's SP strategic model, we have deepened our understanding of strategic concepts, enhanced our understanding of the overall situation of strategic planning, and made clear how enterprises should consider strategies from five aspects before entering the market, so as to complete the strategic planning in line with the highest interests of enterprises. But things are constantly changing and developing, so we should make good use of the development perspective to look at the problem. Today is different from the past, overseas markets are changing, and the relationship between economies is gradually changing from competition to competition. Being in different overseas markets, we should realize that the mature strategic system in the past may be outdated, and today's strategic system has been endowed with new connotations and values. Although mintzberg's SP strategic model can still guide entrepreneurs to succeed in the management of the domestic market, the internationalization strategy formulated from SP is likely to put enterprises in a dilemma.

Taking Tesla, a new energy vehicle, as an example, this paper explains why it is no longer the best choice to use mintzberg's SP strategy model to formulate an international strategy. After the advent of Tesla, its production, sales and competition in the American domestic market have clear plans, proactive competition plans, mature business models, high-end positioning, and environmental protection concepts. By formulating and implementing such a comprehensive strategy, Tesla shines brilliantly in the local market. Thus, mintzberg's SP strategic model has excellent predictability, adaptability and effectiveness.

However, since Tesla entered the China market on 20 13, its sales volume has been sluggish. Tesla's management followed suit and directly applied the strategy formulated for the US market to the China market, resulting in the actual sales volume of products far from the previous forecast of 65,438+00,000 vehicles per year-in 2065,438+04, Tesla's sales volume in China was only 2,499 vehicles. Although Tesla's sales in 20 15 increased by 48% to 3,690 vehicles, it was less than 8% of Tesla's global sales of 50,500 vehicles in 20 15.

Compared with the popularity when it first appeared in China, Tesla quickly became acclimatized and its sales in China market reached a deadlock. Because many people regard Tesla as a symbol of identity and status, they don't buy Tesla out of love for its performance or recognition of its environmental protection concept. Tesla not only failed to gain a firm foothold in the China market, but also encountered problems such as charging and destroying orders, resulting in stagnant sales. Tesla's sales in China market are stagnant, and the management is hard to blame. In order to deeply analyze Tesla's strategic dilemma, we use mintzberg's SP strategic model to analyze the five major problems highlighted in Tesla's internationalization strategy from five aspects. First, the grand plan is difficult to land. The backwardness of China's power industry and the development of new energy make the construction of charging stations an obstacle to Tesla's development. In addition, problems such as difficulty in charging, incompatibility between charging piles and products, or the charging parking space being occupied by fuel trucks all restrict the promotion of Tesla in China.

Second, multi-party planning is invalid. China Automobile Company does not agree to the open patent scheme. Since Tesla announced the opening of patent in June 20 14, all kinds of "conspiracy theories" have been flying all over the sky. Many domestic new energy automobile manufacturers look on coldly and are unmoved. In addition, Tesla often becomes the focus of market competition. For example, traditional car companies such as Porsche and Volvo have launched luxury new energy vehicles, many of which are based on Tesla.

Third, it is difficult to integrate business models. Tesla's strategy implementation in China market has not adapted to local conditions. Tesla is very confident in its traditional pure direct selling model and promotes the successful American business model around the world. Therefore, Tesla didn't adopt China's 4S store model, and even hired some middle-aged employees with backward thinking and low proficiency in driving Tesla and young employees with no driving experience to undertake sales duties. As a result, after-sales service and customer inspection leave are extremely poor, which further affects Tesla's sales. Fourth, the original positioning is not flexible. Tesla China team wants to try to sell the new Model s on Tmall platform on the occasion of "Double Eleven", so as to boost Tesla's sales in China and reduce the inventory pressure caused by damaged orders. However, such a grounded marketing strategy has been stopped by the headquarters, because this marketing is contrary to the positioning of "only relying on customer word-of-mouth communication and not making any paid delivery". ... fifth, the target customers don't buy it. Some people in China are not strong enough in environmental awareness. The high pricing shows that Tesla can only target high-end people with strong economic strength, and most of these people would rather buy an imported car with large displacement and luxurious interior at a higher price than buy a new energy vehicle with zero pollution and zero emission at the same price. What annoys China customers even more is that Tesla reduced the sales prices of several main models in March 2065438+2009, and the price reduction of cars on sale in China was very large, reaching 30% at one time. This violates the bottom line of Tesla owners in China, because one of the main motives for Tesla owners in China to buy Tesla at a high price is that its luxury positioning can meet their psychological needs. Tesla's sales price in China has dropped so sharply, which shows that Tesla's positioning of the target population is not accurate enough. It can be seen that mintzberg's SP strategic model only plays a guiding role in formulating internationalization strategy. It is necessary to grasp the trend of the times, look at the problem from a development perspective, and constantly inject new elements into the classic strategy to make it fuller and more instructive for enterprise practice.

Therefore, the new 5P strategic model is more suitable for the international development of enterprises.

human

partnership

predict

plastically

multiculturalism

The new SP strategic model can help enterprises to have a clear understanding of their own strengths, weaknesses, threats and opportunities before going abroad and make all-round preparations. The new SP strategic model can help enterprises to implement the all-round development strategy of putting people first, attaching importance to partners, emphasizing prediction, enhancing plasticity and being compatible with multiculturalism. The new SP strategic model can lead enterprises to explore a forward-looking international strategic development path, help enterprises move from domestic to overseas, from Excellence to Excellence, and finally achieve a lasting foundation.

From planning to personnel

Drucker believes that people are not equal to data and cannot be digitized. Although data can reflect the development law and changing trend of things to a certain extent, and it is of strategic significance to guide the development of enterprises, in the process of enterprise development, data is cold after all, but people are living individuals. Making a plan alone cannot guarantee the success of an enterprise, and "people" is the most critical factor for the success of an enterprise. An enterprise is a big family composed of individuals. If enterprises want employees to truly integrate into the collective, they must put humanistic care for employees in the first place. At the same time, managers should also learn to change their roles and be good service providers for employees. In addition, customers are the object of enterprise service, and providing good service for customers is the foundation of enterprises. Customer satisfaction is the premise of improving customers' purchasing intention and the inexhaustible motive force for enterprise development. Therefore, if enterprise F () wants to achieve rapid development, it must fully understand the customer's psychology on the basis of giving employees humanistic care and provide unique services to customers according to their characteristics. In fact, in the process of internationalization, enterprises often fail before they hit the market. The reason is not a misunderstanding of the data, nor a mistake in statistical analysis, but a neglect of the key element of people. In the unpredictable global competitive environment, the unchangeable plan can not bring success to enterprises, and winning people's hearts is the capital for enterprises to resist risks. In other words, in the process of internationalization, the lack of humanistic care and the neglect of the importance of people often cause fatal harm to enterprises.

Fuyao Group constantly adjusts its strategy and emphasizes the role of people in the process of entering the automobile glass market in Europe and America. In the process of internationalization, Fuyao Group faces a great challenge-the labor cost abroad is eight times that of domestic labor. At the same time, influenced by European and American cultures, it is more difficult for Fuyao Group to manage local employees. Therefore, this puts forward higher requirements for the personnel management and incentive system of Fuyao Group. Fuyao Group macro-controls the talent management mode and rationally allocates local talents-on the one hand, it makes use of the technical advantages of China employees; On the other hand, give full play to the advantages of local employees, establish a production team of Fuyao Group, continuously strengthen the training of employees' language and code of conduct, and accelerate the integration among employees. The above cases show that the importance of people in the process of enterprise internationalization is self-evident. People-oriented will be an important link in the process of enterprise internationalization.

From planning to cooperation

Mintzberg thinks that strategy is planning. The purpose of planning is to defeat competitors through the strategy of combining reality with reality. However, in today's era of rapid development of investment and trade liberalization and global economic integration, internationalization strategy is more reflected in competition than competition. Trade is not a zero-sum game, and participants need to achieve multi-win through their respective comparative advantages. Therefore, in this brand-new era characterized by * * *, it is far more important to build partnerships and maintain trust than to defeat competitors.

From 65438 to 0994, Wal-Mart entered the Brazilian market. Wal-Mart started price competition with Carrefour, which entered Brazil as early as 1975, by taking the lead in price reduction. It is conceivable that the result must be "dry injury to the enemy, loss of 800." Because Carrefour and other similar enterprises have also issued price reduction announcements, which led to the price war and Wal-Mart's fiasco. Coincidentally, since 20 14, the subsidy war between Didi and Uber has been in full swing. Some people think that Didi loses about $4 billion a year. Moreover, both sides have supplemented "ammunition" for this subsidy war through financing, and further "expanded their troops to prepare for war." Others believe that the total financing of Didi and Uber has exceeded 30 billion US dollars, equivalent to 1/3 of the total cost of the first Gulf War of the US military. If they use this huge sum of money to open up more market space, improve software and hardware, and enhance customers' product experience, they will eventually achieve a win-win situation.

International competition is by no means a zero-sum game. On the contrary, it is a team game, which encourages enterprises to play a synergistic effect through international cooperation. It is worth noting that the value created by the team through cooperation is often not superimposed, but multiplied. CRRC and South African partner * * * jointly develop the African market. CRRC buys key parts from China that cannot be produced in South Africa and then transports them to South Africa; And set up a factory in South Africa to produce other parts, such as bogies, cables, pipelines, etc. And then assemble and debug the locomotive. On the one hand, CRRC has created a large number of employment opportunities for South Africa and stimulated the South African economy, on the other hand, it has also given itself a low-cost competitive advantage. This kind of partnership thinking has become the first step for CRRC to open the African market. The change of thinking about competitors as partners can help enterprises reduce competitors and win development space in an unfamiliar environment.

From mode to prediction

Mintzberg believes that strategy is a continuous behavior. As a mature strategy, its mode helps enterprises to maintain the consistency of actions and avoid failure due to exploring new paths. Enterprises can get twice the result with half the effort by replicating this model in the newly entered domestic market. This way of copying the model in the domestic market may be of great guiding significance, because the market environment in China is often similar-political system, economic development level and cultural background are similar. However, if enterprises apply this model to overseas markets without doing any preliminary research, it will suffer a fiasco. For example, McDonald's hopes to introduce western food into the China market and change the eating habits of China people through the successful sales model of "Hamburg, French fries and fried chicken". After entering the China market, McDonald's became a smash hit and was sought after by customers in China. However, with the rapid rise of Chinese fast food, McDonald's has more and more competitors. In the face of fierce competition, McDonald's did not take active measures like KFC (for example, KFC introduced Chinese food products that suit the tastes of China people), so it suffered huge losses.

In contrast, the glory of the king has achieved remarkable success. According to the official data from June, 20 17 to June, 20 10, the glory of the king ranked first in download volume and revenue in the App Store.

The glory of the king redesigned the game screen to meet the needs of overseas players, showing a completely different screen effect. The glory of the king also changed the original role setting of the game according to different cultural backgrounds. In the North American market, the controllable game characters in the glory of the king are no longer historical figures in China, but characters such as elves, boulders and witches. Before entering the Japanese market, the glory of the king also added design details to the hero's appearance according to Japan's historical and cultural background, making it more in line with the preferences of Japanese customers, thus winning the love of Japanese players. For the Islamic market, the glory of the king deleted the game background with saturated colors and replaced it with a game background acceptable to customers. These measures of "the glory of the king" have transformed its overseas edition, bringing customers a brand-new game experience. The glory of the king's successful prediction of its new entry into the market also shows to some extent that the new 5P strategic model can indeed bring value to enterprises.

The premise of implementing the internationalization strategy is that enterprises have made predictions about whether their products can be accepted by overseas markets. Managers need to interpret local policies, study local market environment and analyze local consumption habits to predict whether enterprises can successfully enter the local market. The difference between the forecast and the model helps to explain the problems encountered by lee scott, the former CEO of Wal-Mart. Wal-Mart left Arkansas for Alabama, 600 miles away, to explore new markets. Wal-Mart also hired an expert to study new markets, but this did not help to open up new markets. Facts have proved that Wal-Mart's original business model is not suitable for Alabama's rapidly changing consumer market.

From Positioning to Plasticity

Mintzberg believes that positioning is the premise of making plans, choosing modes and forming ideas, and it is the power of an organization to adapt to the external environment-the existing resources of the organization match the external environment, so that the organization can choose the path suitable for its own development.

As Michael Porter, the father of competitive strategy, pointed out, positioning is the key to making a strategy. In other words, enterprises should choose a unique development path that they are best at and stick to it. But as far as internationalization strategy is concerned, we believe that plasticity is also an important feature that enterprises must have. In this process, it is particularly important for enterprises to have the ability to adapt to the environment. Sticking to the existing positioning can only make enterprises ignore the needs of the local market and eventually miss the opportunity. Taking German mechanical products as an example, the quality of German mechanical products is well-known and can be called world-class. However, high-quality positioning may not successfully cater to overseas markets, because not all customers pursue high quality, for example, customers in some markets pursue cheap prices.

Krupp Zhenxiong Plastic Technology Co., Ltd. failed to develop the China blow molding machine market successfully, which just proved the importance of positioning. This German company has first-class production technology and equipment, but the mid-range positioning of its products makes its price have no advantage at all, and its products are naturally unaccustomed in China. Compared with those domestic blow molding machines with the same performance, which cost only a few hundred thousand yuan, a blow molding machine with a price of more than one million yuan naturally goes unnoticed.

In contrast, COFCO's performance in Brazil is remarkable. Since COFCO entered Brazil in 20 14, it has 2 docks, 12 silos, 1 transfer stations, 2 soybean crushing plants and 4 sugar factories in Brazil, and its direct investment stock in Brazil is nearly 5 billion US dollars. In addition, COFCO's oilseeds business in Brazil exceeds 8 million tons, with a total grain source of 7.4 million tons and a storage capacity of 65,438+0,865,438+0,000 tons. Soybean and corn seed business also accounted for 65,438+04% of the Brazilian market share. Plasticity is the secret of COFCO's success. The business positioning of COFCO in Brazil is not simply copying the positioning of "one-stop industrial chain from field to table" in the domestic market. COFCO regards Brazil as a transit point, builds its own factory to produce primary processed products such as soybeans, grain, oil and sugar, and then resells them to China and other countries. The reason for resale is that Brazil is rich in crop resources, and the products produced and processed by COFCO on this basis are not competitive enough in Brazil's local market.

Therefore, the internationalization strategy of plastics can be self-adjusted according to the external environment. Only by combining the existing advantages and finding a suitable position quickly in the new environment can enterprises win more initiative. In the history of China manufacturing going overseas, Haier is undoubtedly the leader. After Haier entered the American market, it quickly changed its product positioning, starting with small products and mainly promoting mini refrigerators in dormitories and offices. This strategy has enabled Haier to make a major breakthrough in the American market, while avoiding the positive impact with its competitors-General Electric and Maytag.

From concept to multiculturalism

Mintzberg believes that ideas can not only influence the choice of enterprises, but also enable enterprises to connect with the world, perceive the world and give feedback to the world. As a way for enterprises to perceive the world, ideas help to define corporate culture. What a successful international enterprise needs is not a single idea, but a diversified culture. Multiculturalism enables enterprises to fully integrate into overseas markets and better empower local employees. However, many multinational companies failed to fully understand the local consumer culture, values and legal system before entering overseas markets, so they repeatedly hit a wall.

For example, the court in China ruled that New Balance in the United States not only could not use the Chinese logo of New Balance, but also compensated the plaintiff for 5 million yuan. NewBalance in the United States paid a heavy price because it didn't know in advance that China's definition of intellectual property was different from that of western countries. In contrast, Huawei is good at handling the affairs of overseas companies under the western thinking mode, and pays more attention to western laws, property rights and contractual spirit. On July 2010/5, Huawei and Motorola terminated their ten-year cooperation agreement. Motorola took the lead in suing Huawei for stealing its trade secrets. However, the result was unexpected. In this battle, Huawei chose confrontation. On the grounds that Motorola sold network equipment to Nokia Siemens, both Motorola and Nokia Siemens were sued in the Northern District Court of Illinois, USA. Although the two sides finally reconciled, this counterattack was evaluated by The Wall Street Journal as "the first time that China used intellectual property rights as a weapon to counterattack the West". However, Xiaomi, who is also a mobile phone manufacturer, was sent to an Indian court because of the lack of this concept. Enterprises should fully respect multiculturalism and use reverse thinking to realize innovation when implementing internationalization strategy. Nokia has successfully occupied 60% of the Indian market by developing ultra-low-cost mobile phones of $5. Nokia has added various functions to mobile phones according to customers' needs. For example, the power in rural India is very unstable, so Nokia provides rural customers with mobile phones with flashlight function. Nokia clearly saw this demand difference, especially the functional difference, and created a product that met the actual demand at a very favorable price. This fully shows the importance of multiculturalism to the internationalization of enterprises.

Let's look back and see how Tesla made a series of adjustments by using the new SP strategic model after the setback in China. First of all, Tesla realized the importance of people. People are the inexhaustible motive force for the development of enterprises, so people should walk in front of the market plan. As a result, Tesla began to build a comprehensive charging facility, and appointed experienced Zhu Xiaotong as the general manager of China. Secondly, Tesla realized the importance of cooperation. In China, without policy support, the project cannot be successful. Tesla must work closely with the government and win the support of more third parties. Thirdly, Tesla deeply understands the characteristics of customers in China and gives full play to the value of forecasting. Tesla has launched a series of special services in China, such as "air upgrade", "remote diagnosis", "zero maintenance" and "used car recycling". In addition, Tesla has added more plasticity in the positioning of products, which makes enterprises more flexible in the development process and can constantly adjust their product characteristics according to changes in the environment. Elon musk, CEO of Tesla, has said many times that Tesla will set up a factory and R&D center in China to realize localized production and lower the price, so that more customers in China can afford Tesla. On July 8, 2065438+2008/KLOC-0, Shanghai welcomed the largest foreign-funded manufacturing project in history-Tesla Super Factory. Finally, corporate culture is gorgeous because of diversity. Tesla launched a series of environmental protection public welfare projects, trying to create a good development environment for new energy vehicles through these environmental protection public welfare projects, enhance customers' environmental awareness, and help customers form consumption habits in line with environmental protection concepts. We have reason to believe that Tesla's layout and adjustment based on the new SP strategic model will reshape the global pattern of new energy vehicles.

To sum up: new and old 5P:

From planning to personnel

From strategy to partnership

From mode to prediction

From position to plasticity

From perspective to multiculturalism

The new SP strategic model can help enterprises have a clear understanding of their own strengths, weaknesses, threats and opportunities before going abroad!