With the deep analysis of the above alternatives, it is recommended that the company should 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 present new and innovative items in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices too, as financiers are willing to invest more in business with significant R&D costs and boost in the total worth of the company.
Action and implementation Strategy
Technique can be implemented effectively 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 3m Chile Health Care Products B need to carry out different activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which produce the majority of its profits.
• Analyze the current target audience as well as the marketplace section which is not include in the business's circle.
• Evaluate the present financial data to determine the amount that needs to be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to understand that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has possible experience to handle. Obtain most favorable organizations with a strong commitment to health, to construct the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about 3m Chile Health Care Products B values and vision and to avoid potential danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste element, as the base for the 3m Chile Health Care Products B as a company producing healthy products has been constructed under midterm plan and now the company could move towards taste factor also to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new items.
