This document discusses various stability strategies that corporations may employ, including stability strategy, pause/proceed with caution strategy, no-change strategy, and profit strategy. It provides examples of industries that have used stability strategies like steel authority of India and cigarette/liquor industries. Hindustan Levers trial of selling shoes in cities is given as an example of pause/proceed with caution strategy. The document also briefly outlines no-change and profit strategies.

1. Stability strategies
Corporate Level Strategies

2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Stability strategies

4. 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.

5. Examples of Stability strategies
Steel 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’.

6. Examples of Stability strategies
Cigarette, 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.

7. 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

8. 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

9. No-Change Strategy
It is a conscious decision to
do nothing new. The firm
will continue with its
present business definition.
When a firm has a stable
internal and external
environment the firm will
continue with its present
strategy.

10. Profit Strategy
• A profit strategy is one that
capitalizes on a situation in which
old and obsolete product or
technology is being replaced by a
new one. This type of strategy does
not require new investment, so it is
not a growth strategy. Firms
adopting this strategy decide to
follow the same technology, at least
partially, while transiting into new
technological domains.

11. Examples of Profit Strategy
• Sylvania, RCA, and GE are
among the firms that
followed this strategy. They
decided to stay in the
vacuum tube market until
the “end of the game.”