With the deep analysis of the above options, it is advised that the business needs to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just present new and innovative products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share costs as well, as investors want to invest more in companies with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by establishing certain short-term along with long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Family Mart Convenience Store ought to carry out different activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brand names, which produce most of its profits.
• Evaluate the existing target audience along with the marketplace section which is not consist of in the business's circle.
• Analyze the present financial data to measure the amount that should be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the company to know that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has possible experience to deal with. Get most beneficial companies with a strong commitment to health, to develop the consumer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Family Mart Convenience Store values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health along with taste aspect, as the base for the Family Mart Convenience Store as a business producing healthy items has been built under midterm strategy and now the business might move towards taste element also 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 brand-new products.
