With the deep analysis of the above options, it is recommended that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices as well, as financiers want to invest more in business with significant R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be executed effectively by establishing specific short term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Autoliv Qb Proposed Joint Venture need to carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which create the majority of its earnings.
• Examine the current target audience in addition to the marketplace section which is not include in the business's circle.
• Analyze the existing financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has possible experience to deal with. Obtain most beneficial organizations with a strong commitment to health, to construct the client's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Autoliv Qb Proposed Joint Venture values and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Autoliv Qb Proposed Joint Venture as a company producing healthy products has actually been constructed under midterm strategy and now the company might move towards taste factor too to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new products.
