With the deep analysis of the above alternatives, it is advised that the company needs to 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 only introduce new and innovative items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the business to increase its share costs also, as financiers want to invest more in companies with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Method can be executed efficiently by establishing 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 Aggregate Demand And Aggregate Supply must carry out numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create the majority of its revenue.
• Evaluate the current target market as well as the market segment which is not include in the business's circle.
• Examine the present financial data to measure the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the company to understand that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Acquire most beneficial organizations with a strong dedication to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Aggregate Demand And Aggregate Supply values and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste factor, as the base for the Aggregate Demand And Aggregate Supply as a company producing healthy items has been built under midterm plan and now the business might move towards taste element too to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
