With the deep analysis of the above alternatives, it is recommended that the business needs to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the company to not just introduce brand-new and ingenious items in the market it would also decrease the high expenses on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share prices also, as financiers are willing to invest more in business with significant R&D spending and boost in the total worth of the business.
Action and implementation Strategy
Method can be implemented effectively by developing particular short term as well as long term plans. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Congoleum Corp Abridged should carry out different activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand portfolio done, to take a look at the core selling brands, which create most of its income.
• Examine the current target audience in addition to the marketplace segment which is not include in the business's circle.
• Evaluate the present financial data to determine the quantity that must be invested in the R&D and acquisitions.
• Examine the potential investors 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 know that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to deal with. Obtain most favorable organizations with a strong dedication to health, to build the customer's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Congoleum Corp Abridged values and vision and to avoid prospective threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health in addition to taste factor, as the base for the Congoleum Corp Abridged as a company producing healthy products has been constructed under midterm strategy and now the business could move towards taste element 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 substantial time to construct brand-new products.
