What is Profit Strategy?


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Profit Strategy

 

This strategy is adopted in large firms. Firms would be generating cash flow as primary concern for ensuring durable stability durable stability of the organization. Under the following circumstance, a profit strategy may arise:

 

  • If there is a decline of sales of the product in the market.
  • Expansion became impossible due to heavy cost.
  • Contribution of the unit to the total sales in less.
  • Exchange the market as and when possible.
  • To step out from the market where the product has lost its value.

 

A frequent method to tide over temporary difficulties and to keep afloat through a profit strategy is to sell off assets such a prime land in a commercial locality and move out to the suburbs. Others have hived off some division in non-core businesses to raise money, while few have resorted to provide services to other organization which need outsourcing facilities.

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