STABILITY STRATEGIES

Is adopted when a company attempts at incremental improvement of its performance by marginally changing 1 or more of its business in terms of their respective customer groups, customer functions& alternative technologies-either singly or collectively. The essence of stability strategies is not doing anything but sustaining moderate growth in line wit existing trends.

Examples
A copier machine Co. provides better after-sales services to its existing customers to improve its Co. and product image & increase sales of accessories and consumables. A steel Co. modernises its plant to improve efficiency & productivity.

Types of Stability Strategies

No-Change Profit Pause/Proceed-with-Caution

No-Change Strategy
Conscious Decision To do nothing i.e no implementation of strategy. Here the Co. decides to continue its present strategy as: There are no significant opportunities or threats in the external environment,no major competitors and no obvious threat of substitute products.

Profit Strategy
This strategy reflects aggressive measures undertaken by a Co. to sustain its profitability,in case the profitability is drifting lower or there are external market threats like economic recession,Govt.attitude,competitive pressures.

Pause/Proceed-with-Caution strategy
Employed by organisations that wish to test the ground before moving ahead with a fullfledged corporate strategy or organisations that had a blistering pace of expansion & wish to rest awhile moving ahead. The purpose is to let the strategic changes seep down the organizational levels, let the systems adapt new strategies.