Consolidating company accounting functions
Stability strategy does entail changing the way the business is run, however, the range of products offered and the markets served remain unchanged or narrowly focused.
Hence, the stability strategy is perceived as a non-growth strategy.
With a holding strategy the company continues at its present rate of development. Although growth is not pursued as such, this will occur if the size of the market grows.
It only means that their growth targets are modest and that they wish to maintain a status quo.
Since products, markets and functions remain unchanged, stability strategy is basically a defensive strategy.
The current level of resource input and managerial effort will not be increased, which means that the functional strategies will continue at previous levels.
This approach suits a firm, which does not have requisite resources to pursue increased growth for a longer period of time.