Question

Tomâ s Welding has been supplying frames to the mobile home industry for many years. His business has remained steady despite the entry of other firms in the industry. Tomâ s is likely pursuing a ____________________ strategy.

Answer 1

Answer:

Stability strategy

Explanation:

Stability strategy is the strategy which is used through the company in order to stop the expenditures on expansion. In short, means the circumstance or situation where the company would not venture into the new markets or to introduce the new products.

This strategy is adopted through the company by following reasons as:

1.When the gain from the plan of expansion is less than costs involved.

2.When company consolidate its position.

So, in this case, the business remain steady when the there is entry of other firms in industry. Therefore, Toma wants to pursue the stability strategy.