With the deep analysis of the above options, it is advised that the company must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not only introduce brand-new and ingenious products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would allow the business to increase its share costs also, as investors are willing to invest more in business with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be executed successfully by establishing certain short term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Ing Direct Redefining Direct Banking ought to perform different activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its profits.
• Examine the existing target market in addition to the market sector which is not consist of in the company's circle.
• Analyze the present financial data to measure the quantity that must be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the company to know that how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to handle. Acquire most beneficial organizations with a strong commitment to health, to develop the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Ing Direct Redefining Direct Banking worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste aspect, as the base for the Ing Direct Redefining Direct Banking as a company producing healthy products has been constructed under midterm plan and now the business could move towards taste element also to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct new items.
