With the deep analysis of the above options, it is suggested that the business ought to select the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the business to not only present new and ingenious products in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the profit margins. It would allow the business to increase its share costs also, as financiers are willing to invest more in business with considerable R&D spending and increase in the overall worth of the business.
Action and implementation Strategy
Method can be executed efficiently by establishing particular short-term in addition to long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Cleveland Cliffs Inc should perform numerous activities to execute its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to examine the core selling brands, which produce most of its earnings.
• Analyze the current target market along with the market segment which is not include in the company's circle.
• Analyze the current financial information to measure the amount 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 want early earnings (dividend). It would let the company to understand that how much quantity must be invested in R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the company has prospective experience to deal with. Acquire most favorable organizations with a strong commitment to health, to build 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 Cleveland Cliffs Inc worths and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Cleveland Cliffs Inc as a business producing healthy products has actually been developed under midterm strategy and now the business could move towards taste factor also to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to build brand-new products.