With the deep analysis of the above alternatives, it is recommended that the business ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just present new and ingenious items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share rates as well, as financiers want to invest more in companies with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Technique can be carried out successfully by establishing particular short term in addition to long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Paint Pen Inc need to carry out various activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate the majority of its profits.
• Evaluate the existing target market along with the marketplace sector which is not include in the business's circle.
• Examine the current financial data to measure the amount that ought to be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the company to understand that how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to deal with. Get most favorable organizations with a strong commitment to health, to develop the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Paint Pen Inc values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health along with taste aspect, as the base for the Paint Pen Inc as a company producing healthy items has been built under midterm strategy and now the company could move towards taste factor too to understand the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build brand-new products.
