COMBINATION

STRATEGY
MGT 3063
NAME : NADYA SHAMINI A/P SELVAKUMAR
ID:01BBA-201404-00037
PREPARED FOR: MISS SELVI

Definitio
n
The Combination Strategy means making the use of other grand
strategies (stability, expansion or retrenchment) simultaneously.
Simply, the combination of any grand strategy used by an
organization in different businesses at the same time or in the
same business at different times with an aim to improve its
efficiency is called as a combination strategy.

COMBINATION STRATEGY
Combination strategy is not an independent classification but it is a
combination of different strategies stability, growth, retrenchment in
various forms.
It also know as Mixed or Hybrid Strategy.
Thus the possible combinations of strategies may be:
Stability in some businesses and growth in other businesses
Stability in some businesses and retrenchment in other businesses
Growth in some businesses and retrenchment in other businesses
Stability, growth and retrenchment in different businesses

 Such strategy is followed when an organization is large and complex and

consists of several businesses that lie in different industries, serving
different purposes.
EXAMPLE:

A baby diaper manufacturing company expands its offering of diapers for

the babies to have a wide range of its products (Stability) and at the same
time, it also manufactures the diapers for old age people, thereby covering
the other market segment (Expansion). In order to focus more on the diapers
division, the company plans to shut down its baby wipes division and
allocate its resources to the most profitable division (Retrenchment).

CONCLUSION

In the Nutshell, company is following all the three grand strategies with the
objective of improving its performance. The strategist has to be very
careful while selecting the combination strategy because it includes the
study of the environment and the challenges each business operation
faces. The Combination strategy can be followed either simultaneously or
in the sequence