With the deep analysis of the above options, it is suggested that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not only introduce new and ingenious items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share prices also, as investors want to invest more in companies with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be executed efficiently by developing specific short term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Staples C need to perform various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which produce the majority of its revenue.
• Evaluate the current target market along with the marketplace sector which is not include in the business's circle.
• Examine the existing financial data to determine the quantity that needs to be spent on the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to know that how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has potential experience to handle. Get most beneficial companies with a strong commitment to health, to construct the consumer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Staples C worths and vision and to avoid potential danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste factor, as the base for the Staples C as a business producing healthy items has actually been developed under midterm strategy and now the company could move towards taste aspect too to understand 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 develop brand-new items.