With the deep analysis of the above alternatives, it is advised that the business must choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the business to not just introduce 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 prices as well, as financiers are willing to invest more in business with substantial R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Technique can be executed successfully by developing particular short term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Indigo Books And Music Inc 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 take a look at the core selling brands, which produce the majority of its revenue.
• Analyze the existing target market along with the market segment which is not consist of in the company's circle.
• Evaluate the present financial data to measure the amount that should 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 company to understand that how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to handle. Acquire most favorable organizations with a strong dedication to health, to construct the consumer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Indigo Books And Music Inc worths and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Indigo Books And Music Inc as a business producing healthy items has actually been constructed under midterm strategy and now the business could move towards taste element as well to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new items.
