With the deep analysis of the above alternatives, it is recommended that the business should choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce brand-new and ingenious products 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 business to increase its share rates as well, as investors are willing to invest more in companies with considerable R&D costs and increase in the overall worth of the business.
Action and implementation Strategy
Technique can be implemented effectively by establishing specific short term along with long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Colt Industries need to perform various activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which produce most of its earnings.
• Analyze the existing target market as well as the marketplace section which is not include in the company's circle.
• Evaluate the existing financial data to measure the amount that should be invested in the R&D and acquisitions.
• Analyze the potential financiers and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the business to understand that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has possible experience to deal with. Get most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Colt Industries values and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Obtain companies with health in addition to taste element, as the base for the Colt Industries as a business producing healthy items has been developed under midterm strategy and now the business might move towards taste factor also to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build new products.
