With the deep analysis of the above alternatives, it is advised that the company ought to select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just present brand-new and innovative items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share rates also, as financiers want to invest more in companies with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Method can be implemented effectively by establishing particular short term as well as long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Tesla Motors Inc ought to perform different activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which generate most of its earnings.
• Evaluate the present target audience as well as the market section which is not include in the business's circle.
• Examine the existing financial data to measure the amount that should be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has potential experience to deal with. Obtain most beneficial companies with a strong commitment to health, to construct the consumer's understandings in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Tesla Motors Inc worths and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste factor, as the base for the Tesla Motors Inc as a business producing healthy items has actually been built under midterm plan and now the company might move towards taste aspect also 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.
