With the deep analysis of the above options, 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 only present brand-new and ingenious products in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share rates also, as investors want to invest more in business with substantial R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by developing certain short-term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan America Online Inc Disclosure Strategy should 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 take a look at the core selling brands, which create most of its revenue.
• Examine the current target audience along with the market sector which is not consist of in the business's circle.
• Analyze the present financial data to determine the quantity that ought to be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to know that just how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to handle. Obtain most beneficial companies with a strong commitment to health, to construct the client's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about America Online Inc Disclosure Strategy values and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste factor, as the base for the America Online Inc Disclosure Strategy as a company producing healthy products has been constructed under midterm strategy and now the company could move towards taste aspect as well 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 considerable time to develop new items.
