With the deep analysis of the above alternatives, it is recommended that the company ought to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not only present brand-new and innovative products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share prices too, as investors are willing to invest more in companies with substantial R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be implemented efficiently by establishing certain 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 1366 Technologies must perform different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create most of its earnings.
• Analyze the existing target audience as well as the market sector which is not consist of in the company's circle.
• Analyze the current financial data to measure the quantity that ought to be spent on the R&D and acquisitions.
• Examine the prospective 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 must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has prospective experience to handle. Acquire most favorable companies with a strong commitment to health, to construct the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about 1366 Technologies worths and vision and to avoid possible threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste element, as the base for the 1366 Technologies as a business producing healthy items has actually been built under midterm strategy and now the business could move towards taste aspect also to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new products.
