Pause/ Proceed with Caution Strategy - Stability strategies

Corporate Level Strategies

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Stability strategies

Stability strategies

Stability strategy is a

strategy in which the

organization retains its

present strategy at the

corporate level and

continues focusing on its

present products and

markets.

Examples of Stability strategiesSteel Authority of India has

adopted stability strategy

because of over capacity in steel

sector. Instead it has

concentrated on increasing

operational efficiency of its

various plants rather than going

for expansion. Others industries

are ‘heavy commercial vehicle’,

‘coal industry’.

Examples of Stability strategiesCigarette, liquor industries

fall in this category because

of strict control over

capacity expansion. Both

these industries require

license under the provisions

of Industries (Development

and regulations) Act, 1951.

Pause/ Proceed with Caution Strategy

It is employed by the firm

that wish to test the ground

before moving ahead with a

full fledged grand strategy,

or by firms that have an

intense pace of expansion

and wish to rest for a while

before moving ahead

Example• In the India shoe market

dominated by Bata and Liberty, Hindustan Levers better known for soaps and detergents, produces substantial quantity of shoes and shoe uppers for the export market. In late 2000, it started selling a few thousand pairs in the cities to find out the market reaction. This is a pause proceed with caution strategy before it goes full steam into another FMCG sector that has a lot of potential