With the deep analysis of the above options, it is advised that the company should pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just introduce brand-new and innovative products in the market it would likewise lower 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 investors are willing to invest more in companies with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Technique can be executed successfully by developing certain short term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Ecolab Inc D 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 brands, which create most of its profits.
• Evaluate the current target audience along with the market sector which is not consist of in the business's circle.
• Examine the current financial information to determine the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the business to understand that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has possible experience to handle. Obtain most favorable companies with a strong commitment to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Ecolab Inc D values and vision and to avoid possible risk 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 D as a business producing healthy items has been constructed under midterm plan and now the company might move towards taste element as well to grasp 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 develop new products.
