With the deep analysis of the above alternatives, it is recommended that the company ought to choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only introduce new and innovative items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the profit margins. It would allow the company to increase its share prices as well, as financiers want to invest more in business with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be executed effectively by establishing particular short-term as well as long term plans. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Danatbank must perform numerous activities to implement its NHW method effectively. 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 produce most of its earnings.
• Examine the present target market as well as the market section which is not include in the business's circle.
• Evaluate the current financial data to measure the amount that must be spent on the R&D and acquisitions.
• Evaluate the possible investors and their nature, i.e. do they want long term advantages (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those companies in which the business has prospective experience to deal with. Acquire most beneficial companies with a strong dedication to health, to develop the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Danatbank worths and vision and to avoid potential risk of sunk expense.
Long Term Plan (1-10 years)
• Obtain organizations with health as well as taste factor, as the base for the Danatbank as a company producing healthy products has been developed under midterm strategy and now the company might move towards taste element 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 considerable time to develop new items.
