With the deep analysis of the above options, it is recommended that the company ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not only introduce new and innovative products in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share costs as well, as financiers want to invest more in companies with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented effectively by developing particular short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Kanthal must carry out different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which produce most of its income.
• Evaluate the existing target market in addition to the market section which is not consist of in the company's circle.
• Evaluate the present financial information to measure the amount that must be invested in the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has prospective experience to handle. Get most beneficial organizations with a strong commitment to health, to construct the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Kanthal worths and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Kanthal as a company producing healthy items has been developed under midterm plan and now the company could move towards taste factor as well 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 significant time to develop brand-new products.
