Reasons for Stability Strategy:
The important reasons for pursuing stability strategy are the following:
- The company is doing fairly well and it is hopeful of the same in future.
- A family dominated or private company may not like to expand its business if it amounts to diluting the control or if effective supervision is not possible by the family members.
- The feeling that sticking to the known business is always better and safe.
- The company may not have the resources and capabilities for expansion.