With the deep analysis of the above options, it is recommended that the company needs to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present brand-new and innovative products in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share costs too, as financiers want to invest more in companies with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be executed efficiently by establishing specific short-term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Days Inn need to perform numerous activities to implement its NHW method effectively. 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 income.
• Evaluate the existing target market in addition to the marketplace segment which is not include in the business's circle.
• Examine the current financial information to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to handle. Acquire most beneficial organizations with a strong dedication to health, to develop the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Days Inn values and vision and to avoid possible risk of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Days Inn as a company producing healthy items has been built under midterm strategy and now the business might move towards taste element also 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 significant time to build new products.
