With the deep analysis of the above options, it is recommended that the company must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just introduce brand-new and ingenious items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the business to increase its share rates as well, as financiers want to invest more in companies with substantial R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by developing particular short term along with long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Asea Brown Boveri The Abacus System should perform various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create most of its earnings.
• Evaluate the existing target market as well as the market section which is not include in the business's circle.
• Evaluate the existing financial information to measure the amount that must be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that how much quantity needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has possible experience to handle. Get most favorable companies with a strong dedication to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Asea Brown Boveri The Abacus System worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Asea Brown Boveri The Abacus System as a business producing healthy items has been constructed under midterm strategy and now the business could move towards taste aspect also to grasp 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 construct new items.
