This stability strategy is a conscious decision to do nothing new, that is to continue with the present business definition. Taking no decision is sometimes a decision too.
When faced with the predictable and certain external environment a stable organizational environment, a firm decides to continue with its present strategy. Because,
- The firm does not find it worthwhile to alter the present situation by changing the strategy.
- No significant opportunities or threats operating in the environment.
- No major new strengths and weaknesses within the organization.
- No new competitors.
- No obvious threat of substitute products.
Taking into account the external and internal environmental situation, the firm decides not to do anything new.
Several small and medium sized firms operating in a familiar market – more often a niche market that is limited in scope and offering products or services through a time-tested technology rely on the no-change strategy.