With the deep analysis of the above alternatives, it is suggested that the company must 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 just introduce new and innovative items in the market it would likewise lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would enable the company to increase its share prices too, as investors want to invest more in companies with considerable R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Technique can be executed successfully by developing particular short-term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Clarks At A Crossroads Video need to perform 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 generate most of its earnings.
• Evaluate the current target audience as well as the marketplace sector which is not include in the business's circle.
• Evaluate the present financial data to determine the quantity that needs to be invested in the R&D and acquisitions.
• Analyze the potential 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 invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies 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 ideal instructions.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Clarks At A Crossroads Video values and vision and to prevent prospective threat of sunk expense.
Long Term Plan (1-10 years)
• Get organizations with health as well as taste aspect, as the base for the Clarks At A Crossroads Video as a business producing healthy products has been developed under midterm plan and now the company could move towards taste aspect as well 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 considerable time to construct brand-new products.
