The above strategies are not mutually exclusive. It is possible to adopt a mix of the above to suit particular situations. An enterprise may seek stability in some areas of activity, expansion in some and retrenchment in the others. Retrenchment of ailing products followed by stability and capped by expansion in some situations may be thought of. For some organizations, a strategy by diversification and/or acquisition may call for a retrenchment in some obsolete product lines, production facilities and plant locations. Stability, Expansion, Retrenchment all at a time.
Reasons of Combination Strategy
Major Reasons for Combination Strategy
(i)Risk: The organization is large and faces complex environment
(ii)Environment: It is demanding so company has to understand demand of environment.
(iii)Setting consolidation: Company has expanded much more than its capability therefore, it is not able to run, so it moves on consolidation.
(iv)Threat: As the organization is composed of different businesses, each of which lies in a different industry requiring a different response.
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