With the deep analysis of the above options, it is suggested that the company should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only introduce new and ingenious products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices too, as investors want to invest more in companies with significant R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be carried out successfully by establishing specific short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Business To Business Electronic Commerce Monduscom An E Marketplace For Small And Medium Sized Enterprises must perform various activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which generate the majority of its profits.
• Evaluate the present target market along with the marketplace section which is not consist of in the business's circle.
• Analyze the present financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that how much quantity needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Get most favorable organizations with a strong dedication to health, to develop the client's understandings in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Business To Business Electronic Commerce Monduscom An E Marketplace For Small And Medium Sized Enterprises values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste aspect, as the base for the Business To Business Electronic Commerce Monduscom An E Marketplace For Small And Medium Sized Enterprises as a business producing healthy items has been built under midterm strategy and now the business might move towards taste factor as well to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new products.
