With the deep analysis of the above options, it is advised that the business should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce brand-new and innovative products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share costs as well, as financiers want to invest more in companies with considerable R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented efficiently by developing particular 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 Colgate Palmolive Company should carry out different 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 generate most of its earnings.
• Examine the present target market as well as the marketplace segment which is not include in the business's circle.
• Evaluate the present financial data to determine the quantity that must be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the company to understand that how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to handle. Get most favorable organizations with a strong dedication to health, to develop the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Colgate Palmolive Company worths and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Colgate Palmolive Company as a company producing healthy products has been constructed under midterm strategy and now the company might move towards taste factor too to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new products.
