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.
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
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. 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.
8. 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.”
