What are the reasons for stability strategy?

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.