With the deep analysis of the above options, it is recommended that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and innovative items in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share rates as well, as financiers are willing to invest more in business with significant R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented effectively 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 Service Factory ought to carry out various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate most of its revenue.
• Evaluate the present target audience in addition to the marketplace segment which is not include in the company's circle.
• Evaluate the existing financial data to measure the amount that ought to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Get most beneficial organizations with a strong commitment to health, to build the client's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Service Factory worths and vision and to prevent prospective risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Service Factory as a company producing healthy items has been built under midterm plan and now the company could move towards taste factor as well to grasp the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new products.
