With the deep analysis of the above alternatives, it is advised that the business needs to pick 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 only introduce new and ingenious items in the market it would also decrease the high expenses on R&D under alternative 2 and increase the earnings margins. It would enable the company to increase its share costs also, as financiers want to invest more in companies with substantial R&D costs and increase in the total worth of the business.
Action and implementation Strategy
Technique can be carried out successfully by establishing specific short-term along with long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short-term strategy Dovernet ought to carry out numerous activities to implement its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand name portfolio done, to take a look at the core selling brands, which generate the majority of its income.
• Evaluate the present target market along with the market segment which is not include in the business's circle.
• Evaluate the current financial information to measure the amount that must be spent on the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they desire long term benefits (capital gain), or the want early revenues (dividend). It would let the business to understand that just how much amount should be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has potential experience to handle. Obtain most beneficial organizations with a strong commitment to health, to construct the client's perceptions in the right direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Dovernet values and vision and to avoid potential threat of sunk cost.
Long Term Plan (1-10 years)
• Acquire organizations with health as well as taste factor, as the base for the Dovernet as a company producing healthy products has actually been developed under midterm plan and now the business might move towards taste element also to comprehend the customers, 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.
