With the deep analysis of the above options, it is recommended that the company must select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce brand-new and innovative products in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs too, as investors are willing to invest more in companies with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed efficiently by developing particular short term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy American Express A Relationship Not A Transaction must perform various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create most of its income.
• Evaluate the current target audience as well as the market section which is not consist of in the company's circle.
• Examine the present financial data to determine the quantity that needs to be spent on the R&D and acquisitions.
• Examine the potential investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to handle. Acquire most favorable companies with a strong dedication to health, to develop the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about American Express A Relationship Not A Transaction worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the American Express A Relationship Not A Transaction as a company producing healthy items has actually been built under midterm plan and now the business could move towards taste aspect as well to understand 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 build brand-new products.
