With the deep analysis of the above options, it is advised that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just introduce new and innovative products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share rates also, as investors are willing to invest more in business with significant R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out effectively by developing particular short-term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Ameritrade Holding Corp must carry out numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which create most of its income.
• Examine the present target market in addition to the market segment which is not consist of in the business's circle.
• Analyze the existing financial data to determine the quantity that should be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the want early earnings (dividend). It would let the business to know that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to deal with. Obtain most beneficial organizations with a strong commitment to health, to build the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Ameritrade Holding Corp worths and vision and to avoid possible risk of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health along with taste element, as the base for the Ameritrade Holding Corp as a business producing healthy products has been constructed under midterm plan and now the company might move towards taste factor also 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 significant time to build new products.
