With the deep analysis of the above alternatives, it is suggested that the company should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the business to not just present brand-new and innovative products in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share costs as well, as financiers want to invest more in business with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by developing particular short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Haidilao Catering From A Hot Pot To Crisis Management must carry out various activities to execute its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which create most of its profits.
• Analyze the existing target audience along with the marketplace section which is not include in the company's circle.
• Analyze the existing financial data to determine the amount that ought to be spent on the R&D and acquisitions.
• Analyze the possible 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 know that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has potential experience to deal with. Obtain most beneficial companies with a strong commitment to health, to build the consumer's perceptions in the best instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Haidilao Catering From A Hot Pot To Crisis Management values and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste element, as the base for the Haidilao Catering From A Hot Pot To Crisis Management as a company producing healthy items has been developed under midterm strategy and now the business could move towards taste aspect too 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 considerable time to develop brand-new items.
