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 make it possible for the company to not just present brand-new and innovative items in the market it would likewise reduce the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share rates as well, as financiers are willing to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by establishing particular short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Andreessen Horowitz need to carry out different activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which create the majority of its revenue.
• Examine the existing target market in addition to the marketplace sector which is not include in the business's circle.
• Evaluate the present financial information to measure the quantity that must be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that just how much quantity ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the company has potential experience to deal with. Obtain most favorable organizations with a strong dedication to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Andreessen Horowitz values and vision and to prevent prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Andreessen Horowitz as a business producing healthy products has actually been constructed under midterm plan and now the company could move towards taste aspect also to comprehend 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.
