With the deep analysis of the above options, it is suggested that the business needs to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present new and ingenious products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share prices also, as investors are willing to invest more in companies with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented successfully by developing particular short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Peugeot Sa need to perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which produce most of its revenue.
• Examine the current target audience in addition to the market section which is not include in the company's circle.
• Analyze the current financial data to determine the amount that must be invested in the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the company to understand that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to deal with. Obtain most beneficial companies with a strong commitment to health, to construct the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Peugeot Sa values and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Peugeot Sa as a company producing healthy items has been built under midterm plan and now the business could move towards taste element too to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build new products.
