Combination Strategy
Definition
Combination strategies are a mixture of stability, expansion, or retrenchment strategies. They are also called mixed or hybrid strategies and may be applied in an organization either at the same time in different businesses or at different times in the same business.
It is not possible for an organization to adopt a single strategy. The functioning of every organization is complex; therefore, they need to adopt a combination of different strategies for the achievement of organizational objectives.
It is commonly followed by organisations with multiple unit diversified product & National or Global market in which a single strategy does not fit all businesses at a particular point of time.
For instance, an organization cannot follow a stability strategy for a very long period; it has to think about the expansion plans in the long run.
Different Combination Strategies
Combination strategies are of two types, which are as follows:
-
Simultaneous Combination:
Involves using the strategy at the same time, but in different businesses.
For example, an organization adopts expansion strategies in all its businesses at the time of market boom.
-
Sequential Combination:
Refers to using the strategy at different times in the same business.
For example, an organization adopts various strategies, such as stability, expansion, and retrenchment for a department as per the business cycle.
Example of Combination Strategy
Aditya Birla group, a diversified conglomerate with businesses in different areas, has practiced all types of corporate strategies.
For example, the group:
- Acquired Novelis and become the world’s largest aluminum rolling organization
- Merged its group companies Indo Gulf and Birla Global Finance with Indian Rayon and was renamed as Aditya Birla Nuvo
- Concluded joint ventures with various multinationals in South East Asia and China
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