With the deep analysis of the above options, it is advised that the company should select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only introduce new and ingenious products in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share costs also, as investors want to invest more in business with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented efficiently by establishing particular short term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Tesla ought to carry out various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brand names, which generate the majority of its revenue.
• Examine the current target audience along with the marketplace section which is not include in the business's circle.
• Examine the current financial information to determine the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the company to understand that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has prospective experience to deal with. Obtain most favorable organizations with a strong commitment to health, to develop the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Tesla values and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Tesla as a business producing healthy items has actually been constructed under midterm plan and now the company might move towards taste aspect also to grasp 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 brand-new products.
