STABILITY STRATEGY
STABILITY OR CONSOLIDATION STRATEGY
Nature Of Stability Strategy
A firm following
stability strategy maintains its current business and product portfolios;
maintains the existing level of effort; and is satisfied with incremental
growth. It focuses on fine-tuning its business operations and improving
functional efficiencies through better deployment of resources. In other words,
a firm is said to follow stability/ consolidation strategy if:
- It decides to serve the same markets with the same products;
- It continues to pursue the same objectives with a strategic thrust on incremental improvement of functional performances; and
- It concentrates its resources in a narrow product-market sphere for developing a meaningful competitive advantage.
