With the deep analysis of the above alternatives, it is suggested that the company should select 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 present brand-new and ingenious items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share costs too, as investors are willing to invest more in business with considerable R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by establishing certain short-term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Learning From Losing A Customer need to perform different activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which generate most of its earnings.
• Examine the present target market in addition to the market sector which is not consist of in the business's circle.
• Evaluate the current financial data to measure the amount that should be spent on the R&D and acquisitions.
• Examine the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early earnings (dividend). It would let the company to understand that just how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to deal with. Get most beneficial companies with a strong dedication to health, to develop the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Learning From Losing A Customer worths and vision and to avoid prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste factor, as the base for the Learning From Losing A Customer as a company producing healthy products has actually been built under midterm plan and now the business could move towards taste factor too 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 construct brand-new products.
