With the deep analysis of the above alternatives, it is recommended that the business 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 present new and innovative items 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 as well, as financiers are willing to invest more in business with substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be executed successfully by developing certain 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 Ecolab Inc F need to carry out 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 the majority of its earnings.
• Evaluate the present target market along with the marketplace section which is not include in the company's circle.
• Examine the present financial information to determine the amount that needs to be spent on the R&D and acquisitions.
• Evaluate the potential investors 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 must be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to handle. Acquire most favorable companies with a strong dedication to health, to build the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Ecolab Inc F values and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste element, as the base for the Ecolab Inc F as a company producing healthy products has been built under midterm strategy and now the business might move towards taste factor also to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build brand-new items.
