STABILITY STRATEGIES

 Stability Strategy

One of the important goals of a business enterprise is stability - to safeguard its existing interests and strengths, to pursue well established and tested objectives, to continue in the chosen business path, to maintain operational efficiency on a sustained basis, to consolidate the commanding position already reached, and to optimise returns on the resources committed in the business.

A stability strategy is pursued by a firm when:

•  It continues to serve in the same or similar markets and deals in same or similar products and services. 
•  The strategic decisions focus on incremental improvement of functional performance 

Stability strategy is not a ‘do nothing’ strategy. It involves keeping track of new developments to ensure that the strategy continues to make sense. This strategy is typical for those firms whose product have reached the maturity stage of product life cycle. Small organizations may also follow stability strategy to consolidate their market position and prepare for the launch of growth strategies.

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