With the deep analysis of the above alternatives, it is recommended that the business needs to select the alternative 3 in order to preserve 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 ingenious items in the market it would likewise lower the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share prices also, as investors are willing to invest more in companies with considerable R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented successfully by establishing specific short-term along with long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Barilla Sp A Abcd must perform various activities to implement its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which create most of its profits.
• Evaluate the current target market along with the marketplace segment which is not include in the business's circle.
• Examine the current financial information to measure the quantity that should be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the company to understand that just how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has possible experience to deal with. Obtain most beneficial companies with a strong dedication to health, to construct the consumer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Barilla Sp A Abcd worths and vision and to prevent potential threat of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste element, as the base for the Barilla Sp A Abcd as a business producing healthy products has actually been constructed under midterm strategy and now the company might move towards taste aspect as well 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 significant time to construct brand-new products.
