With the deep analysis of the above alternatives, it is advised 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 company to not only present new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates as well, as financiers are willing to invest more in business with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by developing particular 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 Icedelights must perform 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 brand names, which produce the majority of its earnings.
• Examine the existing target audience as well as the marketplace segment which is not include in the business's circle.
• Examine the existing financial information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the company to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to deal with. Acquire most beneficial organizations with a strong commitment to health, to build the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Icedelights values and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste element, as the base for the Icedelights as a business producing healthy items has actually been built under midterm plan and now the company could move towards taste factor as well 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 new products.