With the deep analysis of the above alternatives, it is suggested that the company should choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not only introduce brand-new and ingenious items in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as financiers want to invest more in companies with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by developing specific short-term along with long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy How Velcro Got Hooked On Quality need to carry out numerous activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which produce most of its revenue.
• Analyze the present target market along with the market sector which is not consist of in the company's circle.
• Analyze the present financial information to measure the quantity that must be invested in the R&D and acquisitions.
• Analyze the potential 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 understand that how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to handle. Obtain most favorable organizations with a strong commitment to health, to construct the customer's understandings in the best instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about How Velcro Got Hooked On Quality worths and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the How Velcro Got Hooked On Quality as a company producing healthy products has actually been developed under midterm strategy and now the business could move towards taste element also to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new items.
