With the deep analysis of the above options, it is recommended that the company needs to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just introduce new and ingenious items in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share costs too, as investors are willing to invest more in business with considerable R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be executed successfully by developing certain short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy New Product Development Map should perform different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate the majority of its revenue.
• Examine the present target market as well as the marketplace sector which is not include in the business's circle.
• Analyze the present financial information to determine the amount that must be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has potential experience to deal with. Get most favorable organizations with a strong commitment to health, to develop the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about New Product Development Map worths and vision and to prevent potential danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the New Product Development Map as a company producing healthy items has actually been developed under midterm plan and now the company could move towards taste element as well 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 products.
