With the deep analysis of the above alternatives, it is suggested that the company needs to select 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 brand-new and innovative items in the market it would also decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share rates as well, as financiers are willing to invest more in business with substantial R&D costs and increase in the total worth of the company.
Action and implementation Strategy
Method can be executed effectively by establishing certain short-term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Compagnie Financiere Richemont Sa ought to carry out numerous activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which generate most of its profits.
• Evaluate the present target market in addition to the market segment which is not include in the company's circle.
• Analyze the current financial data to measure the amount that should be invested in the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the business to understand that how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has prospective experience to deal with. Get most favorable organizations with a strong dedication to health, to develop the customer's understandings in the ideal instructions.
• Focus more on acquisitions than R&D to develop the base in the consumer's mind about Compagnie Financiere Richemont Sa values and vision and to prevent prospective danger of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health along with taste factor, as the base for the Compagnie Financiere Richemont Sa as a business producing healthy products has actually been developed under midterm plan and now the company might move towards taste factor 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 significant time to build brand-new products.
