With the deep analysis of the above options, it is recommended that the company needs to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present brand-new and innovative items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the business to increase its share rates too, as financiers are willing to invest more in business with substantial R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be carried out successfully by developing particular short term as well as long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Citibank Na In China should carry out various activities to execute 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 brand names, which produce most of its income.
• Evaluate the present target audience along with the market section which is not consist of in the business's circle.
• Evaluate the existing financial data to determine the quantity that must be spent on the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the business has possible experience to handle. Acquire most favorable organizations with a strong commitment to health, to construct the consumer's perceptions in the best direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Citibank Na In China values and vision and to avoid prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Citibank Na In China as a company producing healthy items has been constructed under midterm plan and now the company might move towards taste element also to comprehend the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop brand-new products.
