With the deep analysis of the above alternatives, it is advised that the company ought to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share costs too, as investors want to invest more in companies with significant R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be executed effectively by developing specific short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Changan Automobile Co Ltd ought to perform numerous activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate most of its profits.
• Examine the existing target market as well as the marketplace sector which is not consist of in the business's circle.
• Evaluate the present financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to deal with. Obtain most favorable organizations with a strong dedication to health, to build the customer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Changan Automobile Co Ltd worths and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste factor, as the base for the Changan Automobile Co Ltd as a company producing healthy items has been built under midterm strategy and now the business could move towards taste factor too to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to construct new items.
