With the deep analysis of the above options, it is recommended that the business needs to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and innovative products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates too, as financiers are willing to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be carried out effectively by developing particular short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Chinese Beer Industry must perform different activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate most of its profits.
• Examine the current target audience along with the marketplace segment which is not include in the business's circle.
• Examine the current financial information to determine the quantity that must be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (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)
• Acquire those companies in which the business has potential experience to deal with. Acquire most beneficial organizations with a strong dedication to health, to develop the customer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Chinese Beer Industry worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Chinese Beer Industry as a business producing healthy items has been constructed under midterm strategy and now the company could move towards taste aspect too 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 considerable time to develop brand-new items.
