With the deep analysis of the above alternatives, it is recommended that the business should pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only present brand-new and ingenious products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would allow the company to increase its share prices too, as investors want to invest more in business with significant R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Method can be implemented efficiently by establishing specific short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Caterpillar Tunneling Canada Corporation must carry out numerous activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which produce most of its profits.
• Examine the current target market as well as the market sector which is not consist of in the business's circle.
• Evaluate the present financial information to determine the quantity that needs to be invested in the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early profits (dividend). It would let the company to know that how much amount 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 dedication to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Caterpillar Tunneling Canada Corporation values and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste element, as the base for the Caterpillar Tunneling Canada Corporation as a business producing healthy items has actually been built under midterm strategy and now the business could move towards taste factor also to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
