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Definition

Stability strategy

Definition (1):

Stability strategy is a corporate strategy in which an organization continues to do what it is currently doing.

Examples of this strategy include continuing to serve the same clients by offering the same product or service, maintaining market share, and sustaining an organization that does not grow, but it doesn’t fall behind, either.

Definition (2):

Stability Strategy is a corporate strategy where a company concentrates on maintaining its current market position.” A business adopting this approach concentrates on its present market and product.

Generally, when a business is satisfied with its present market position or share uses this strategy. A business using a stability strategy does not require any additional work and resources and applies the current expertise of its workforce. This strategy is fruitful only if the business environment is stable and simple.

Generally, a stability strategy can be of five types:

  • No-change Strategy: Businesses that follow this strategy take up no new activities and continue with its existing business. Well established businesses can use this strategy.
  • Sustainable Growth Strategy: A business uses this strategy when it feels the external environment is unfavorable. For example, there is an economic recession, or when the business lacks financial resources.
  • Modest Growth Strategy: Businesses try to attain the same target as they did previously, under this strategy.
  • Profit Strategy: A business may follow this strategy if it wants to earn or generate cash.
  • Pause Strategy: Businesses adopt this temporary strategy if they have enjoyed rapid growth in the past.
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