With the deep analysis of the above options, it is suggested that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not only introduce new and ingenious items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices as well, as financiers want to invest more in business with substantial R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be carried out efficiently by developing certain short-term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Mercury Athletic Footwear Xls should perform different activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate the majority of its income.
• Examine the existing target market as well as the marketplace sector which is not include in the company's circle.
• Evaluate the current financial information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early revenues (dividend). It would let the business to know that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to handle. Acquire most beneficial companies with a strong dedication to health, to develop the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Mercury Athletic Footwear Xls worths and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste factor, as the base for the Mercury Athletic Footwear Xls as a company producing healthy products has been built under midterm plan and now the company might move towards taste aspect as well to comprehend the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new products.
