With the deep analysis of the above options, it is recommended that the company must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the company to not just present new and innovative products in the market it would also minimize 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 also, as investors are willing to invest more in companies with significant R&D costs and increase in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed effectively by establishing particular short term along with long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Dell Computer Corp ought to carry out numerous activities to implement its NHW method efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which produce most of its income.
• Analyze the present target audience as well as the marketplace sector which is not include in the business's circle.
• Analyze the existing financial information to measure the quantity that must be invested in the R&D and acquisitions.
• Analyze the possible investors and their nature, i.e. do they want long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to understand that how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the business has possible experience to deal with. Get most beneficial companies with a strong dedication to health, to develop the customer's understandings in the ideal direction.
• Focus more on acquisitions than R&D to construct the base in the consumer's mind about Dell Computer Corp values and vision and to avoid possible risk of sunk expense.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Dell Computer Corp as a company producing healthy products has actually been developed under midterm plan and now the business might move towards taste factor too to grasp 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 brand-new products.
