With the deep analysis of the above alternatives, it is recommended that the business should 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 business to not just present brand-new and ingenious items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates also, as financiers are willing to invest more in business with substantial R&D spending and increase in the total worth of the company.
Action and implementation Strategy
Technique can be carried out efficiently by developing particular short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Alibabacom ought to carry out various activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brand names, which create most of its profits.
• Examine the existing target audience as well as the marketplace section which is not include in the business's circle.
• Examine the present financial information to determine the quantity that must be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the business has prospective experience to deal with. Get most favorable organizations with a strong dedication to health, to construct the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Alibabacom worths and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste factor, as the base for the Alibabacom as a company producing healthy products has actually been built 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 considerable time to construct brand-new products.
