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Stability strategies
Corporate Level Strategies
Prepared By
Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations.
Manu Melwin JoyAssistant Professor
Ilahia School of Management Studies
Kerala, India.Phone – 9744551114
Mail – [email protected]
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.
Pause/ Proceed with Caution Strategy
It is 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
Example• 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 StrategyIt 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.”