With the deep analysis of the above alternatives, it is recommended that the company needs to pick the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would enable the business to not only present new and ingenious items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share prices too, as financiers 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
Strategy can be executed efficiently by developing particular short-term as well as long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Chiaphua Group Vietnam should perform various activities to implement its NHW strategy efficiently. 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 earnings.
• Analyze the present target audience in addition to the market section which is not include in the business's circle.
• Analyze the existing financial information to determine the quantity that ought to be spent on the R&D and acquisitions.
• Analyze 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 know that just how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has prospective experience to deal with. Acquire most favorable organizations with a strong commitment to health, to construct the client's understandings in the right direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Chiaphua Group Vietnam values and vision and to prevent potential threat of sunk cost.
Long Term Plan (1-10 years)
• Get companies with health in addition to taste element, as the base for the Chiaphua Group Vietnam as a company producing healthy items has actually been constructed under midterm plan and now the business could move towards taste element too to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
