With the deep analysis of the above options, it is suggested that the company should select the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not just present brand-new and ingenious products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share rates also, as investors are willing to invest more in companies with substantial R&D spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be implemented successfully by establishing particular short-term in addition to long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Biocon Ltd should perform numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create the majority of its profits.
• Evaluate the present target market as well as the market sector which is not include in the business's circle.
• Evaluate the current financial data to measure the quantity that ought to be invested in the R&D and acquisitions.
• Evaluate the possible financiers and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (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 business has possible experience to deal with. Obtain most favorable organizations with a strong dedication to health, to construct the client's understandings in the best instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Biocon Ltd values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health in addition to taste aspect, as the base for the Biocon Ltd as a business producing healthy items has actually been built under midterm strategy and now the business could move towards taste aspect too 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 brand-new products.
