A Business Encyclopedia

Pause/Proceed with Caution Strategy

Definition: The Pause/Proceed with Caution Strategy is well understood by the name itself, is a stability strategy followed when an organization wait and look at the market conditions before launching the full-fledged grand strategy. Also, the firm that has intensely followed the expansion strategy would wait till the time the new strategies seeps down the organizational levels and look at the changes in the organizational structure before taking the next step.

Like the Profit Strategy, the Pause/Proceed with Caution strategy is also a temporary strategy followed by the firms. But however, these both differ significantly; the profit strategy focuses on sustaining profitability until the temporary difficulties or the conditions become more hospitable. Whereas the Pause/Proceed with caution strategy is a deliberate action taken by the firm to postpone the strategic action till the best opportunity knocks at the door. Thus, waiting for the right strategy for the right time.

The pause/proceed with caution strategy is often followed by the manufacturing companies who study the market conditions thoroughly and then launch their new products into the market. It is more prevalent in the army attacks; wherein the reconnaissance party moves ahead to examine the situation before the troops, who comes in full strength to ultimately attack the enemies.

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