With the deep analysis of the above options, it is advised that the business should 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 company to not only introduce new and innovative products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share costs also, as financiers are willing to invest more in companies with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively 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 strategy Ecolab Inc B need to perform different activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce most of its income.
• Analyze the present target market in addition to the market segment which is not include in the business's circle.
• Analyze the existing financial information to measure the quantity that ought to be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the company to understand that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has prospective experience to handle. Obtain most favorable organizations with a strong dedication to health, to construct the customer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Ecolab Inc B values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste element, as the base for the Ecolab Inc B as a company producing healthy products has been developed under midterm plan and now the company might move towards taste factor also to comprehend 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 brand-new items.
