With the deep analysis of the above alternatives, it is advised that the company must pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and ingenious items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the business to increase its share costs also, as investors want to invest more in companies with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be carried out efficiently by developing specific short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Volvo And Geely should perform different activities to execute its NHW method 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 income.
• Examine the existing target audience as well as the market section which is not consist of in the business's circle.
• Analyze the current financial information to determine the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the business to know that just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Get most beneficial companies with a strong commitment to health, to develop the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Volvo And Geely worths and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Volvo And Geely as a business producing healthy products has actually been built under midterm plan and now the business could move towards taste factor as well to comprehend 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 develop brand-new items.
