With the deep analysis of the above options, it is suggested 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 present brand-new and innovative items in the market it would also minimize 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 too, as financiers want to invest more in business with significant R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Method can be implemented effectively by developing specific short term in addition to long term plans. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Digamem Inc should carry out different activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which create most of its income.
• Examine the present target audience in addition to the marketplace section which is not include in the business's circle.
• Examine the current financial data to measure the amount that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the want early profits (dividend). It would let the business to understand that just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Obtain most favorable companies with a strong dedication to health, to develop the client's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Digamem Inc values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain companies with health as well as taste aspect, as the base for the Digamem Inc as a company producing healthy products has been built under midterm strategy and now the company could move towards taste element also 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 new items.
