With the deep analysis of the above options, it is recommended that the business ought to pick the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only introduce new and ingenious products in the market it would likewise reduce 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 costs too, as financiers are willing to invest more in business with substantial R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Technique can be implemented effectively by establishing particular short term as well as long term strategies. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Dachan Great Wall Group ought to perform various activities to execute its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brand names, which generate the majority of its revenue.
• Examine the current target market in addition to the market segment which is not consist of in the business's circle.
• Examine the present financial information to determine the amount that should be invested in 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 business to understand that how much amount needs to be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has prospective experience to deal with. Get most beneficial companies with a strong dedication to health, to construct the customer's understandings in the right direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Dachan Great Wall Group worths and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Dachan Great Wall Group as a company producing healthy products has been built under midterm strategy and now the company might move towards taste element as well to comprehend the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new items.
