With the deep analysis of the above options, it is recommended that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just introduce brand-new and innovative products in the market it would also lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share rates also, as financiers are willing to invest more in business with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out successfully by developing particular short-term in addition to long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Chile In Search Of A Second Wind need to carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce most of its income.
• Analyze the existing target audience as well as the market segment which is not consist of in the business's circle.
• Evaluate the existing financial information to measure the amount that needs to be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the company to know that how much quantity should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to deal with. Obtain most beneficial organizations with a strong dedication to health, to build the client's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Chile In Search Of A Second Wind worths and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste factor, as the base for the Chile In Search Of A Second Wind as a business producing healthy items has actually been built under midterm plan and now the business could move towards taste aspect 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 substantial time to build brand-new products.
