With the deep analysis of the above options, it is suggested that the business should select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not only introduce brand-new and innovative items in the market it would also lower 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 spending and increase in the overall worth of the company.
Action and implementation Strategy
Method can be executed effectively by establishing certain short-term in addition to long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Comptronics Associates Inc should carry out different activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brands, which create the majority of its earnings.
• Analyze the present target audience along with the market section which is not consist of in the company's circle.
• Examine the existing financial information to determine the amount that should be spent on the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to handle. Obtain most beneficial organizations with a strong commitment to health, to construct the consumer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Comptronics Associates Inc worths and vision and to prevent possible danger of sunk expense.
Long Term Plan (1-10 years)
• Get companies with health as well as taste aspect, as the base for the Comptronics Associates Inc as a business producing healthy products has been constructed under midterm plan and now the company might move towards taste factor as well to understand 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 construct new products.
