With the deep analysis of the above alternatives, it is recommended that the business must 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 brand-new and innovative products in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share rates also, as investors are willing to invest more in companies with significant R&D spending and boost in the overall worth of the company.
Action and implementation Strategy
Strategy can be executed successfully by establishing particular short term in addition to long term strategies. These plans could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Domestic Auto Parts ought to carry out different activities to implement its NHW method 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 income.
• Examine the current target market as well as the marketplace segment which is not include in the company's circle.
• Examine the existing financial information to determine the amount that ought to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early revenues (dividend). It would let the company to know that just how much amount needs to be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to handle. Obtain most favorable companies with a strong commitment to health, to construct the consumer's perceptions in the right instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Domestic Auto Parts worths and vision and to prevent possible threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste element, as the base for the Domestic Auto Parts as a business producing healthy items has been built under midterm strategy and now the business might move towards taste factor too to grasp the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to build new items.
