With the deep analysis of the above alternatives, it is suggested that the company ought to pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would enable the company to not just introduce new and ingenious items in the market it would also lower the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the business to increase its share prices also, as investors want to invest more in companies with considerable R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Method can be carried out efficiently 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 Del Norte Paper Co C need to carry out different activities to execute 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 revenue.
• Analyze the existing target market as well as the market sector which is not consist of in the company's circle.
• Analyze the current financial data to measure the quantity that must be spent on the R&D and acquisitions.
• Examine the prospective investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early revenues (dividend). It would let the business to know that how much quantity should be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the business has prospective experience to handle. Get most favorable companies 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 Del Norte Paper Co C worths and vision and to prevent potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health along with taste aspect, as the base for the Del Norte Paper Co C as a company producing healthy items has actually been constructed under midterm plan and now the business could move towards taste aspect as well to grasp the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new products.
