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Stability Strategy - Strategic Alternatives & Choice of Strategy

   Posted On :  26.06.2018 03:56 am

The organization that adopts a stability strategy focuses on its existing line or lines of business and attempts to maintain them through one of the following ways.

Stability Strategy
 
 
The organization that adopts a stability strategy focuses on its existing line or lines of business and attempts to maintain them through one of the following ways.
 
1. Maintaining status quo-continue to do what it has been doing
 
2. Sustainability- reinforcing the organization with more competencies to carry on things in a better or innovative way.
 
This is a useful strategy in several situations.
 
1. An organization that is large and dominates its market(s) may choose a stability strategy in an effort to avoid government controls or penalties for monopolizing the industry.
 
2. Another organization may find that further growth is too costly and could have detrimental effects on profitability.
3. Finally, an organization in a low- growth or no-growth industry that has no other viable options may be forced to select a stability strategy.  
Hindusthan Lever keeps its Lux soap updated to retain its hold in market. According to a press release, recently the soap has been enriched with nourishing natural ingredients, which are visible in the soap. There are four variants - Rose extracts, Almond oil, Fruit extracts and Sandal saffron with a base of rich milk cream. The last is a completely different and new variant. These soaps are packed in a metallic wrapper to retain the freshness and fragrance for a longer period than usual, the press release said. The content of TFM (Total fatty matter) has been raised from 60 per cent to 71 per cent.

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