Answer:
No Change Strategies - A firm makes no considerable changes to its objectives or operations. The firm examines the internal and external factors affecting the firm in its current operating and market environment. The firm makes a conscious decision to maintain its current strategic objectives. This is most common in low competition environments, with no major or market-shifting occurrences, and the firms competitive position is stable. For example, firms operating in niche markets commonly choose a niche (cost or differentiation) strategy and maintain that strategy until internal or external factors necessitate a change.
Profit Strategies - A profit strategy endorses any action necessary to maintain or improve profitability. This may include cutting costs (operational efficiency, outsourcing), selling assets, raising prices, increasing output (sales), or offsetting losses with profits from another business unit. This strategy is common with firms that are profitable but are facing temporary pressures that are threatening their profitability, such as competition, market conditions, recession, inflation, cost escalations, etc. If these pressures become long-term, a profit strategy risks harming the firm by reducing competitiveness (particularly if the firm competes on cost or price). If a firms value offering or resources are becoming obsolete, the profit strategy may provide temporary profits before the business unit is dissolved or otherwise disposed of. In any event, the strategy generally does not involve the investment of new resources. Profitability is maintained with present levels or less resources.
Caution Strategies - This strategy requires a firm to wait and continue to assess the market before employing any particular strategy. It is basically reconnaissance before strategic action is taken. This is a temporary strategy employed for a limited time while deciding on a formal strategy to pursue. It avoids making any significant investment of resources and discontinues any strategy formula pursued until the firm has a full understanding of the market and the effect of former strategies. This strategy is common among manufacturing companies evaluating the launch of new products.
