With the deep analysis of the above options, it is advised that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would allow the company to not just introduce 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 costs too, as investors are willing to invest more in business with considerable R&D spending and boost in the total worth of the company.
Action and implementation Strategy
Method can be carried out effectively by developing certain short term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Bskyb should perform numerous activities to implement 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 most of its earnings.
• Evaluate the current target audience in addition to the marketplace segment which is not consist of in the company's circle.
• Examine the current financial information to determine the quantity that should be invested in the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to understand that just how much amount should be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has prospective experience to handle. Obtain most favorable companies with a strong commitment to health, to develop the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Bskyb worths and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste aspect, as the base for the Bskyb as a business producing healthy products has been developed under midterm strategy and now the company might 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 build brand-new items.
