With the deep analysis of the above alternatives, it is recommended that the company should choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not only introduce brand-new and innovative items in the market it would also minimize the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share rates too, as financiers are willing to invest more in business with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be executed successfully by developing particular short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Suppliers Manage Your Customers need to carry out various activities to execute its NHW technique effectively. 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 produce the majority of its earnings.
• Examine the existing target market along with the market section which is not consist of in the business's circle.
• Evaluate the current financial data to determine the amount that should be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has prospective experience to handle. Obtain most favorable organizations with a strong commitment to health, to develop the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Suppliers Manage Your Customers values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Suppliers Manage Your Customers as a business producing healthy products has actually been built under midterm strategy and now the business could move towards taste factor also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
