With the deep analysis of the above options, it is advised that the company must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present brand-new and innovative products in the market it would also minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as financiers want to invest more in business with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be executed efficiently by establishing particular short-term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Suitsupply Expanding Into China should perform different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which produce the majority of its profits.
• Analyze the current target audience along with the marketplace sector which is not consist of in the business's circle.
• Evaluate the present financial information to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the potential financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has potential experience to handle. Obtain most favorable companies with a strong commitment to health, to develop the customer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Suitsupply Expanding Into China worths and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health along with taste factor, as the base for the Suitsupply Expanding Into China as a company producing healthy items has been built under midterm strategy and now the company could move towards taste factor as well to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new products.
