With the deep analysis of the above options, it is advised that the company ought to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and ingenious items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as investors want to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be implemented effectively by establishing particular short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Brita need to perform various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create most of its profits.
• Analyze the present target audience along with the marketplace sector which is not consist of in the business's circle.
• Analyze the existing financial information to determine the amount that should be invested in the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the business to understand that how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to handle. Get most favorable organizations with a strong dedication to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Brita values and vision and to prevent potential danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste factor, as the base for the Brita as a company producing healthy items has been constructed under midterm strategy and now the business could move towards taste aspect as well to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
