Profit Strategy - Stability strategies

Corporate Level Strategies

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Stability strategies

Stability strategies

Stability strategy is a

strategy in which the

organization retains its

present strategy at the

corporate level and

continues focusing on its

present products and

markets.

Examples of Stability strategiesSteel Authority 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 strategiesCigarette, 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.

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.”