Combination Strategies
It is the combination of stability, growth & retrenchment strategies adopted by an organisation, either at the same time in its different businesses, or at different times in the same business with the aim of improving its performance. For example, it is certainly feasible for an organization to follow a retrenchment strategy for a short period of time due to general economic conditions and then pursue a growth strategy once the economy strengthens.
The obvious combination strategies include (a) retrench, then stability; (b) retrench, then growth; (c) stability, then retrench; (d) stability, then growth; (e) growth then retrench, and (f) growth, then stability.
Reasons for adopting combination strategies are given below
• Rapid Environment change
• Liquidate one unit, develop another
• Involves both divestment & acquisition (take over)
It is commonly followed by organizations with multiple unit diversified product & National or Global market in which a single strategy does not fit all businesses at a particular point of time.
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