With the deep analysis of the above alternatives, it is recommended that the company should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the company to not just introduce brand-new and ingenious items in the market it would likewise decrease the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share prices too, as financiers are willing to invest more in business with significant R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Technique can be implemented successfully by establishing specific short-term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Areva should carry out various activities to execute its NHW strategy 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 produce most of its earnings.
• Examine the current target audience as well as the market section which is not include in the business's circle.
• Analyze the existing financial data to determine the quantity that ought to be invested in the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the business to understand that just how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has possible experience to deal with. Get most beneficial companies with a strong dedication to health, to build the consumer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Areva values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste factor, as the base for the Areva as a business producing healthy items has actually been built under midterm strategy and now the company might move towards taste aspect as well to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct brand-new items.
