Cinemex Recommendations Case Studies

Case Study Solution And Analysis

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With the deep analysis of the above alternatives, it is recommended that the business must pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not just present brand-new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share rates also, as financiers are willing to invest more in business with substantial R&D costs and boost in the overall worth of the company.

Action and implementation Strategy

Method can be carried out effectively by developing particular short term in addition to long term plans. These strategies might be as follows;

Short Term Plan (0-1 year)

• Under the short-term plan Cinemex should carry out various activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce the majority of its earnings.
• Analyze the present target audience in addition to the marketplace sector which is not include in the company's circle.
• Analyze the present financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to understand that how much amount ought to be spent on R&D.

Mid Term Plan (1-5 years)

• Acquire those organizations in which the business has possible experience to deal with. Get most beneficial companies with a strong commitment to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Cinemex values and vision and to avoid potential danger of sunk expense.

Long Term Plan (1-10 years)

• Acquire companies with health along with taste factor, as the base for the Cinemex as a company producing healthy products has been constructed under midterm plan and now the company might move towards taste element also 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 build new products.