In wireless communication networks link adaptation techniques are widely used to improve the quality by adapting various parameters of channel. Adaptive modulation and coding (AMC) is one such technique which adopts various modulation techniques based on certain channel conditions like received signal power or signal strength or distance. This paper compares simulation results of adaptive modulation with the fixed schemes like BPSK, QPSK, 16-QAM and 64-QAM and proposes an AMC technique based on the received signal power. Performance metrics like packet delivery ratio (PDR), throughput and received signal power are analyzed. AMC approach provides better throughput compared to fixed approach.