With the deep analysis of the above alternatives, it is suggested that the business ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present brand-new and innovative products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share rates as well, as investors are willing to invest more in business with significant R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be carried out successfully by establishing particular short term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Goran Kapicic At Actavis China need to perform numerous 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 produce the majority of its profits.
• Analyze the current target market along with the market sector which is not consist of in the company's circle.
• Evaluate the present financial information to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to know that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to handle. Acquire most favorable organizations with a strong dedication to health, to develop the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Goran Kapicic At Actavis China worths and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the Goran Kapicic At Actavis China as a business producing healthy items has actually been built under midterm strategy and now the company might move towards taste factor also to understand the consumers, 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 new products.
