A well-established MM Company is manufacturing tubeless tyre as one of its major products for quite some time. The product has reached at the…

MM Company should adopt a Stability Strategy . A stability strategy is pursued when a firm continues in the same business and aims to maintain its market position through incremental improvements in efficiency and operations. In the given case, the company's product has reached the maturity stage of the product life cycle, and the company wants to modernise its plant and machinery to improve efficiency and productivity while preserving market share in a dynamic business environment. Reasons for Adopting Stability Strategy 1. A product has reached the maturity stage of the product life cycle. 2. The staff feels comfortable with the status quo as it involves less changes and less risks. 3. It is opted when the environment in which an organisation is operating is relatively stable. 4. It is adopted where expansion may be perceived as threatening. 5. After rapid expansion, a firm may want to stabilise and consolidate itself. Applicability in Case of Start-up Venture: Stability strategy is generally not suitable for start-ups because startups are in the early stages of ideation and development where speed, agility and expansion are important. Stability strategy is more meaningful for mature businesses operating at full capacity rather than emerging ventures.