With the deep analysis of the above options, it is advised that the company ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not just introduce new and innovative products in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share rates too, as investors want to invest more in business with significant R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be executed 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 plan Y2k The Bug That Failed To Bite must perform various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which create most of its income.
• Evaluate the current target audience in addition to the marketplace section which is not include in the business's circle.
• Evaluate the existing financial data to measure the amount that must be spent on the R&D and acquisitions.
• Examine the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to deal with. Get most beneficial organizations with a strong commitment to health, to construct the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Y2k The Bug That Failed To Bite worths and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste aspect, as the base for the Y2k The Bug That Failed To Bite as a company producing healthy items has actually been developed under midterm strategy and now the company might move towards taste element also to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new items.
