Although inside the organization the strong sides prevail weaknesses, the internal assets relate to external threat. Therefore, it is a good moment to apply a conservative strategy.
According to its assumptions, you should maximize the usage of own assets, and minimize external threats thanks to them. Success of the company need to be looked for inside it, in its potential. At the same time, you need to avoid threats if it is possible, or try to reduce their influence. This strategy is called conservative because it is associated with the lowest risk. Contrary to general understanding, it is not deprived of creativity.
Within the conservative strategy, you may consider the following conduct:
- taking over the competitor – in a situation of a internally strong company, with decreasing demand, you may consider taking over or buying a competitor and taking over its shares on the market;
- reduction of costs – along with strong internal threats, it is worth to reduce the incurred costs, so the outflow of cash does not weaken the company, when external circumstances become especially unpleasant;
- improvement of the product – it is probable that improvements of products sold by the company will allow to reduce some threats that it has to face. Think about the type of your product and actions that can be taken to make it even better and efficiently sell it;
- development of new products – a company that has internal potential at its disposal and wants to prevent threats from the outside, may broaden its assortment by new products or services. Their implementation will be highly beneficial if it turns out to be successful;
- search for new markets – using the strong sides of the company you may become interested with new markets in order to sell your products or services there. It is also connected with development of new products, for which a proper market is looked for.