Characteristics of Stability Strategy
- A firm opting for stability strategy stays with the same business, same product- market posture and functions, maintaining same level of effort as at present.
- The endeavour is to enhance functional efficiencies in an incremental way, through better deployment and utilization of resources. The assessment of the firm is that the desired income and profits would be forthcoming through such incremental improvements in functional efficiencies.
- Stability strategy does not involve a redefinition of the business of the corporation.
- It is basically a safety-oriented, status quo oriented strategy.
- It does not warrant much of fresh investments.
- It involves minor improvements in the product and its packaging.
- The risk is also less.
- With the stability strategy, the firm has the benefit of concentrating its resources and attention on the existing businesses/products and markets.
- The growth objective of firms employing this strategy is quite modest. Conversely, only firms with modest growth objective choose for this strategy.
No comments:
Post a Comment