With the deep analysis of the above options, it is recommended that the company must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not only introduce brand-new and ingenious products in the market it would likewise reduce the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share prices also, as investors want to invest more in business with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by establishing particular 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 Aegon Vs Axa must carry out different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate the majority of its profits.
• Analyze the existing target market along with the marketplace segment which is not include in the company's circle.
• Analyze the present financial information to measure the quantity that should be invested in the R&D and acquisitions.
• Analyze the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to deal with. Get most favorable organizations with a strong dedication to health, to build the customer's understandings in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Aegon Vs Axa values and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste aspect, as the base for the Aegon Vs Axa as a business producing healthy products has actually been developed under midterm plan and now the business could move towards taste factor too 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 significant time to develop brand-new items.
