With the deep analysis of the above alternatives, it is suggested that the company must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce new and innovative items in the market it would also reduce the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share prices as well, as investors are willing to invest more in business with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Method can be carried out efficiently by establishing certain short-term along with long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Atlantida must carry out different activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which produce the majority of its earnings.
• Evaluate the current target market in addition to the marketplace sector which is not consist of in the business's circle.
• Evaluate the present financial data to measure the amount that ought to be spent on the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early earnings (dividend). It would let the business to understand that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to deal with. Acquire most beneficial companies 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 consumer's mind about Atlantida worths and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste element, as the base for the Atlantida as a company producing healthy items has been developed under midterm plan and now the company 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 new products.
