 The Stability Strategy is adopted when

the organization attempts to maintain its

current position and focuses only on the
incremental improvement by merely
changing one or more of its business
operations in the perspective of customer
groups, customer functions and
technology alternatives, either
individually or collectively.
STABILITY STRATEGY IS ADOPTED BY
COMPANY DUE TO FOLLOWING REASONS –
 When the company plans to consolidate its
position in the industry in which company is
operating.
 When the economy is in recession or there is a
slowdown in the economy than companies want
to have more cash in their balance sheet rather
than investing that cash for expansion or other
such expenses.
 When the company is operating in an industry
which has reached maturity phase and there is
no further scope for growth than also company
adopts stability strategy.
 EXAMPLES OF STABILITY STRATEGIES

 SteelAuthority of India has

adopted stability strategy
because of over capacity in steel
sector. Instead it has
concentrated on increasing
operational efficiency of its
various plants rather than
going for expansion. Others
industries are ‘heavy
commercial vehicle’, ‘coal
industry’.
EXAMPLES OF STABILITY STRATEGIES
 Cigarette, liquor
industries fall in this
category because of
strict control over
capacity expansion. Both
these industries require
license under the
provisions of Industries
(Development and
regulations) Act, 1951.
PAUSE/ PROCEED WITH CAUTION
STRATEGY
 Itis employed by the
firm that wish to test
the ground before
moving ahead with a
full fledged grand
strategy, or by firms
that have an intense
pace of expansion and
wish to rest for a while
before moving ahead
 In the India shoe market
dominated by Bata and Liberty,
Hindustan Levers better known
for soaps and detergents,
produces substantial quantity of
shoes and shoe uppers for the
export market. In late 2000, it
started selling a few thousand
pairs in the cities to find out the
market reaction. This is a pause
proceed with caution strategy
before it goes full steam into
another FMCG sector that has a
lot of potential
 NO-CHANGE STRATEGY

 It
is a conscious decision to
do nothing new. The firm
will continue with its
present business definition.
When a firm has a stable
internal and external
environment the firm will
continue with its present
strategy.
 PROFIT STRATEGY

 A profit strategy is one that

capitalizes on a situation in which
old and obsolete product or
technology is being replaced by a
new one. This type of strategy does
not require new investment, so it is
not a growth strategy. Firms
adopting this strategy decide to
follow the same technology, at least
partially, while transiting into new
technological domains.
 EXAMPLES OF PROFIT STRATEGY

Sylvania, RCA,
and GE are among
the firms that
followed this
strategy. They
decided to stay in
the vacuum tube
market until the
“end of the game.
TUSHAR SHARMA BBA/4551/16
KARNIK SHARMA BBA/4541/16