With the deep analysis of the above options, it is advised that the business must select 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 present new and ingenious products in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs also, as financiers are willing to invest more in business with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing particular short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Delta Airlines should perform numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its income.
• Analyze the current target market along with the market segment which is not consist of in the business's circle.
• Examine the current financial data to determine the amount that should be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that just how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to deal with. Acquire most beneficial companies with a strong commitment to health, to construct the client's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Delta Airlines worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health as well as taste element, as the base for the Delta Airlines as a company producing healthy products has actually been built under midterm plan and now the company could move towards taste factor as well to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new products.
