With the deep analysis of the above options, it is suggested that the business ought to pick 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 brand-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 allow the company to increase its share prices too, as financiers want to invest more in business with substantial R&D costs and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be carried out effectively by establishing particular short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Volkswagen Group must perform numerous activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which create most of its profits.
• Evaluate the present target audience as well as the marketplace section which is not include in the company's circle.
• Analyze the present financial data to measure the quantity that should be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early profits (dividend). It would let the company to understand that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Get most favorable companies with a strong dedication to health, to develop the customer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Volkswagen Group values and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Volkswagen Group as a business producing healthy items has been constructed under midterm strategy and now the business could move towards taste factor also to comprehend 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 develop new products.
