With the deep analysis of the above options, it is recommended that the company must select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not only present brand-new and innovative items in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share prices also, as investors are willing to invest more in business with significant R&D spending and boost in the overall worth of the business.
Action and implementation Strategy
Technique can be carried out efficiently by developing certain short term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Accretive Health need to carry out various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce the majority of its income.
• Examine the current target audience as well as the market section which is not consist of in the company's circle.
• Analyze the existing financial data to measure the amount that needs to be spent on the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the business to understand that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has potential experience to deal with. Acquire most beneficial organizations with a strong dedication to health, to construct the customer's perceptions in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Accretive Health values and vision and to prevent prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Accretive Health as a company producing healthy items has actually been developed under midterm strategy and now the business 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 substantial time to construct brand-new products.
