Reasons for Stability Strategy:

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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.
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