With the deep analysis of the above options, it is advised that the business needs to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would make it possible for the company to not just introduce brand-new and ingenious items in the market it would also reduce the high expenditures on R&D under alternative 2 and increase the profit margins. It would make it possible for the company to increase its share rates also, as investors are willing to invest more in business with considerable R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Method can be carried out effectively by establishing 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 Development Of The Internet In China A Challenges And Opportunities must perform different 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 profits.
• Evaluate the current target audience in addition to the market sector which is not include in the business's circle.
• Examine the current financial data to determine the amount that must be spent on the R&D and acquisitions.
• Evaluate the prospective investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early revenues (dividend). It would let the business to know that how much amount ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has potential experience to handle. Acquire most beneficial companies with a strong dedication to health, to build the consumer's perceptions in the right direction.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Development Of The Internet In China A Challenges And Opportunities worths and vision and to avoid possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Development Of The Internet In China A Challenges And Opportunities as a company producing healthy products has been constructed under midterm strategy and now the business might move towards taste factor too to understand the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to construct brand-new items.
